Saba Capital Management plans to expand its investment activities into both public and private Building Development Companies (BDCs) and interval funds — products that share the structural DNA of closed-end funds but have historically offered retail investors little to no secondary market liquidity in their private forms.
Saba has focused for more than a decade on trading closed-end fund discounts in public markets. The firm now believes the same dynamics — net asset value (NAV) marks that diverge materially from the prices at which investors can actually exit — are present at scale across both public and private BDCs and interval funds, representing hundreds of billions of dollars of retail capital.
Over several months, Saba has made the following investments in this emerging opportunity set:
$40 million in FS KKR Capital Corp. (NYSE: FSK), a publicly traded BDC, representing Saba’s first meaningful foray into the BDC market.
$75 million
