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Hillary Clinton's Shocking $15.4 Million Secret
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Hillary Clinton's Shocking $15.4 Million Secret


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Hillary Clinton's Shocking $15.4 Million Secret

Dear Friends,

She's a shoe-in to win the Democratic Presidential nomination...and in 2016 she could become the first female president in the history of the United States.

Yet whether she wins or not, one thing is certain...

Hillary Clinton and her husband Bill are already extraordinarily wealthy.

The Clintons currently boast a family fortune close to $100 million. The couple's residence in Chappaqua, New York, is worth an estimated $7.4 million.

Meanwhile, the Clinton's Washington D.C. residence is worth an estimated $5.4 million.

As Secretary of State, Mrs. Clinton earned a salary of $186,600 per year. But that's just a drop in the bucket compared to the $14 million advance she was paid for her latest book -- Hard Choices.

Since leaving her post as Secretary of State, Hillary has been a popular speaker. And booking her for your next event won't come cheap -- she reportedly makes $200,000 per speech. The cost of travel and the use of a private jet are negotiated as part of her fee.

But what most people don't realize is that long before the Clintons were cashing in on book deals and speeches, they were making millions in a private, underground market only available to a few well-connected individuals.

When Bill Clinton left office, he and Hillary got into this market in a big way.

According to Bloomberg, the Clintons made $1 million in 2003, $4 million in 2004, and $5 million in 2005.

In 2006, they earned $2.5 million plus a $156,611 bonus. In 2007 they earned another $2.75 million.

All told, the Clintons made an estimated $15.4 million between 2003 and 2007 by consulting for a private market available only to the rich and well-connected.I'll tell you everything you need to know about this secretive market in just a moment -- including how you can use it to collect yields up to 12.5%.

But before I give you all the details, you should know that the Clintons aren't the only famous politicians to cash in on this hidden investment market. Former President George H. W. Bush did it. So did his son, former Florida governor Jeb Bush.

This market is riddled with former government big shots. Al Gore, Rudy Giuliani and Colin Powell have all made money in it.

John Edwards, the 2004 Democratic VP nominee, was hired as an advisor in this private market. Edwards earned a reported $479,512 for about a year of part-time work.

Ex-Vice President Dan Quayle works in this business right now. So does ex-U.S. Treasury Secretary John Snow and ex-Indiana senator and Governor Evan Bayh.

Secretary of State James Baker... Defense Secretary Frank Carlucci... SEC Chairman Arthur Levitt -- they all worked for one of the biggest players after they left office.

Their firm went public in 2012, making each of its 99 partners instant millionaires and billionaires, with stakes valued from $3 million to $2 billion. And today this firm is rewarding investors with a dividend yield of almost 6%.

If all this makes you feel like you're missing out on something, well... you are. And I sincerely hope to change that for you by the time I end this presentation today.

In fact, in just a moment I'll show you exactly how to invest in this underground market.

You can start cashing in on this market today with the click of a mouse using your existing brokerage account. In the process, you could immediately start profiting alongside the Clintons and many of our nation's top celebrities and politicians. You could also start collecting a steady stream of dividend checks...in some cases 12 checks a year...to help fund your retirement and grow your wealth.

The Rich and Famous Invest In Private Markets

The Clintons made millions consulting in a private market. The company Bill Clinton worked for wasn't listed on the New York Stock Exchange. It couldn't be found on the Nasdaq or any of the other exchanges everyone else invests in.

No, the Clintons amassed a fortune by consulting for an entirely separate "underground" stock market. The returns commonly made in this private market blow away the best track records that conventional money managers can boast of.

According to Bloomberg:

Former President Bill Clinton has earned $15.4 million in [private markets] since 2003, according to tax documents released by his wife, [former] presidential candidate Hillary Clinton.

And the Clintons aren't alone...

Former Presidential candidate and Massachusetts Governor Mitt Romney is another perfect example of the kind of staggering wealth these private markets can generate.

In 1984, Romney teamed up with a group of friends and proceeded to make 88% a year on his money until 1999 -- when he quit to run the Salt Lake City Winter Olympics. Conservatively assuming that he added $200 million to his net worth over that time... that comes to $6,400 an hour for 15 years.

Stephen Pagliuca, who worked alongside Romney for 15 years, made enough money to buy the Boston Celtics. Boston magazine estimates Pagliuca's net worth at $410 million. Along with a handful of partners, he bought the team for $360 million back in 2003.

Mitt Romney and his friends aren't the only ones cashing in on this private playground. Starbucks founder Howard Schultz made $13 million this way... in just 10 months.

Rock star Bono, lead singer for mega group U2, recently pocketed an estimated $10 million thanks to this underground market. That's more money than his band generates by playing a sold-out rock show in front of 90,000 people.

Billionaire Saudi Prince Alwaleed bin Talal likes to dabble in underground stocks, too. The "Arabian Warren Buffett" ranks as one of the world's wealthiest individuals... and a few years ago he invested $300 million in this private market.

Bin Talal isn't your average investor. He owns more than 200 cars, including dozens of Rolls Royces, Lamborghinis and Ferraris. He also owns the largest private jet in the world. His yacht had a starring role in the James Bond film Never Say Never Again.

Saudi Prince Alwaleed bin Talal aboard his Flying Palace, the biggest and most expensive personal jet in history. Costing more than $500 million, it includes a garage for two Rolls-Royces, a stable for horses and camels, a pen for hawks and a prayer room that rotates so it always faces Mecca. The Prince recently invested $300 million in the private market that is the subject of this presentation.

The prince and his two wives live in a $305 million palace with 304 rooms, gold-plated faucets, 250 TV sets and a 45-seat cinema. It has separate kitchens for Arabic, Asian and European cuisines... and another just for desserts. His army of chefs can feed 2,000 people on an hour's notice. And he owns two more palaces, just in case.

But you don't have to be a big shot like Alwaleed bin Talal to profit from this underground market.

Nine years ago, a 36 year-old artist named David Choe invested a few thousand dollars in this private market. That small sum is now worth about $200 million.

In 2004, a California businessman named Peter Thiel took the plunge and invested $500,000. His investment has grown into a stunning $2 billion.

And according to The Wall Street Journal, a doctor from Seattle invested $250,000 back in 1985. Today, that investment is worth tens of millions of dollars.

Of course, these are unusual examples. Not everyone who invests in this private market will make millions.

But thanks to a little-known loophole, a savvy group of everyday investors are profiting from this underground market with as little as a few thousand dollars. It's helped them turn modest sums of money into enormous nest eggs...and collect steady dividend checks from stocks yielding up to 12.5%.

Retired Foreign Service Officer Tom M. tells us, "Between 1967 and 1973 I invested about $17,000 in one of these private investments in Pennsylvania. To date it has paid me back $133,644 in cash and the checks keep rolling in every month. My true total return is actually more like$400,000because I reinvested those monthly payments over the years."

Recent college graduate Neal K. was another small investor who managed to make a killing without going through the usual Wall Street brokerage routine. He invested a small sum -- just $600 -- in this private market in 2011. Just one year later that investment delivered gains of $3,400.

Santa Clara, California based consultant Dana E. has also been cashing in on the private market. She invested $61,000 four years ago, and that stake was recently valued at $387,500.

Why Can't Everyone Do This?

Because the U.S. government won't let them.The Securities & Exchange Commission (SEC) has locked small investors out of this market for decades.

In fact, unless you know the backdoor that I'll tell you about in a moment, the SEC limits this "playground" to the wealthiest 6% of investors. You have to be a millionaire before you're allowed in -- and your home equity doesn't count.

You see...there are two ways to buy into a piece of corporate America. There's the well-known world of stocks, bonds, mutual funds, ETFs and all the other securities featured in a zillion financial magazines and websites.

That's the investing world you see on CNBC. 94% of investors take this well-trodden path. But that's not where the real action is.

The stunning profits you see made by the Clintons and all these other politicians and celebrities were made in an entirely separate underground stock market open to only 6% of investors.

The 6% aren't just playing by a different set of rules... they're not even in the same market as regular investors.

In today's presentation, I'll tell you exactly how the "other 6%" are making their fortunes, and I'll show you a simple way to join them. It involves an unusual class of securities called "Business Development Companies"... commonly known as "BDCs." In just a moment I'll tell you exactly what these securities are and how they are able to pay yields up to SIX times higher than the S&P 500. I'll even reveal names and ticker symbols of some of the world's best-performing BDCs.

But for now, all you need to know is that BDCs operate in the same market as the wealthiest 6% of Americans. They always get first dibs on the best deals... buying into the most exciting new ventures long before they trade on the NYSE, the Nasdaq, or any other exchange.

In a nutshell, the 6% are always first in line...

Imagine a sumptuous banquet for 100 guests. Buffet tables are overflowing with delicacies, but just six people are allowed in. They linger over the feast for as long as they want, helping themselves at their leisure to the most delicious offerings. Finally the doors swing open and the rest of the crowd rushes in to pick over what's left.

That's what happens every day on Wall Street... Silicon Valley... and everywhere else that lucrative new businesses are getting off the ground. By the time a company trades on a major exchange like the NYSE or the Nasdaq, the big gains have already been made by the well-placed 6%.

This is the hidden market that the wealthy and connected are tapping into, but that "regular" common stockholders are not.

These elite investors have used this access to make a fortune in companies like Google, Facebook, LinkedIn, and many of today's biggest winners before these stocks ever went public.

Facebook is a great example.

Investors who managed to buy Facebook shares in the underground market made a fortune when it went public. Facebook CEO Mark Zuckerberg made about $19 billion at the IPO. Even rank-and-file Facebook employees hit the jackpot. More than 1,000 of them are now millionaires -- or will be as soon as they cash in their company stock.

Of course, you expect million-dollar windfalls for the founders when they go public. Nike, Apple, Microsoft, Netscape, Google, LinkedIn and Groupon all made their founders into billionaires.

But some who hit the jackpot are just ordinary people with a bit of luck and good timing.

Take the artist I mentioned a few minutes ago. David Choe was paid a few thousand dollars to paint murals on the walls of Facebook's first office. Rather than take his fee in cash, Choe took it in Facebook stock. That decision made Choe about $200 million richer when Facebook went public.

Another one of these private investments made a whole new club of millionaires. Jeffrey Weiner invested in it for two years and walked away with roughly $200 million. A man named Reid Hoffman made $1.6 billion. Even McGraw-Hill got in on the act. It made $14 million this way -- more cash than it pulled in when it sold BusinessWeek magazine.

This underground market has been making smart people fortunes for years. In 1977, a tech-savvy businessman named Mike Markkula privately invested $80,000 in Apple computer. When Apple went public in 1980, he became almost as rich as Steve Jobs -- and a lot richer than Steve Wozniak. Jobs got $217 million... "Woz" got $116 million... and Markkula got $203 million.

Finally, a Way In for the Other 94%

Presidents... senators... governors... all of them are already making fortunes in this exclusive underground stock market.

But how about the regular guy?

We think it's time for small investors to make some money too.

At StreetAuthority we don't believe in separating investors into castes. Everyone should be free to sink or swim in the same sea of opportunities. We don't like it when some of us are forced to play in the kiddy pool.

Apparently Congress doesn't agree. They allowed themselves to trade on inside information for decades. But they had no problem imposing different rules on the rest of us.

So the vast majority of us have had to sit by while the top 6% made fortunes in the hidden stock market.

Until now.

You see... I've found a little-known asset class that allows any investor to participate in this underground market.

Again, the special investments I'm talking about are called Business Development Companies -- BDCs for short. I'll give you the names and ticker symbols of several of today's best-performing BDCs, as well as the market's highest-yielding BDCs (with dividends of up to 12.5%), in just a moment.

This is exactly where we excel at StreetAuthority: finding ways around the "rules" that the Wall Street-Washington power elite use to tilt the game in their favor.

Using this backdoor, you, me and anyone else with at least a few hundred dollars can play the same game as Bill and Hillary Clinton, Mitt Romney, and all the rest of them and collect quarterly or even monthly dividend checks with annual yields up to 12.5%.

For example, Massachusetts native John S. used the private market to turn a modest $16,826 investment back in 2008 into a $113,690 windfall today.

The same goes for William and Elinor S. In late 2011 they used one of these private investments to profit alongside such big shots as Fidelity, Prudential and T. Rowe Price. At last count, their $28,125 investment was worth $84,375, giving them a gain of 200%.

Of course, William and Elinor weren't the only ones cashing in. Dozens of small investors across the United States banked profits ranging from $37,500 to $90,000 on the exact same deal.

I'll tell you exactly how to get into this arena in a minute. But first, how has something so good managed to stay so quiet for so long?

Why Don't You Hear About This Underground Market?

It's human nature. When someone has a good thing, they keep it to themselves. They might share it with a few friends and family, but that's as far as it goes.

That's why this market stays so private. And private is almost always better. Think about it: Private schools, private colleges, private clubs... all of them have an edge over their public peers.

It's the same with private stocks versus public stocks.

And that's the subject of today's presentation.

Specifically, in today's presentation I'll introduce you to the world of business development companies (BDCs), and I'll show you how they provide an easy way to collect income from some of the world's most lucrative, fastest-growing private companies.

Private companies aren't available on public markets like the NYSE or the Nasdaq. Historically, they have only been available to the richest 6% of Americans. But as you'll soon discover, BDCs provide a backdoor way for anyone to profit from private companies. You can invest with as little as a few hundred dollars.

Once you see how easy it is to start shopping in the private stock market, you might never buy a regular public company stock again. As you'll soon see, the deals you can get privately are simply much better.

What's more, the private market is the only place to get a piece of many of the best companies in the world.

Scores of outstanding businesses never go public. Their shares never trade on a major exchange like the NYSE or the Nasdaq -- and they never will.

If you're not investing in these private companies, then you're missing out on a big chunk of our nation's wealth creation. According to Forbes, more than 60 of America's wealthiest billionaires generated their fortunes from private companies.

This makes sense. In fact, take a look around and you'll discover that many of America's largest family fortunes have been built in the private market:

Cargill, the $137 billion agricultural giant responsible for 25% of U.S. grain exports and 22% of our meat supply... not to mention every egg that passes through McDonald's... is a private family-owned business. Its owners have made billions, and today the Cargill family ranks as one of the richest in the world. More than half a dozen descendants of the company founders are worth anywhere from $1.6 billion to $4.3 billion each.

Bechtel Corp., the largest construction and engineering firm in the country, which helped build the Hoover Dam in the 1930s and rebuild Iraq in the 2000s, with 53,000 workers in 48 countries, is private and still family run and owned.

Koch Industries, the $115 billion petroleum, chemicals, energy and minerals conglomerate, is run by two secretive brothers worth $41.6 billion each. It's also private.

Mars Corporation, the candy lover's dream stock, is the maker of M&Ms, Milky Way, Skittles, Snickers and on and on. Headquartered in a plain little building in a Washington, DC suburb, the door is locked and they don't answer the bell. The grandchildren of company founder Frank Mars are worth an estimated $20.5 billion each.

America is literally overflowing with giant, ultra-successful private companies that have made a fortune for early investors.

But without backdoor investments like BDCs, good luck trying to invest in any of these success stories. They are all private. In fact, of the 150,000-plus U.S. firms with annual revenues above $10 million, about 90% are private, making them off-limits to most investors.

The SEC won't let you invest directly in these private companies unless your net worth is at least $1 million -- and your home equity doesn't count. You also need to generate income of at least $200,000 a year. And if you're married, the bar is raised to $300,000.

And even if you meet these strict criteria, you still need the right contacts and expertise to invest directly in private companies. So unless you personally know the founder of a fast-growing private company, it's almost impossible for you to share in the profits.

But thanks to BDCs, you can start investing today with the click of a mouse... and with as little as a few hundred dollars. You can also invest much, much more if you want -- the sky is really the limit here. And there are zero income restrictions, so you don't have to be ultra-wealthy in order to cash in.

And along with the possibility of exponential growth, BDCs are one of the market's highest yielding sectors. I'm going to give you the names and ticker symbols of two BDCs with yields above 11% in just a moment.

But first let's talk about why, in today's market, BDCs and the high-yields they offer are more important than ever.

Forget the NYSE and the Nasdaq -- Here's a Better Alternative

If you're like most investors, then you're probably tired of the ups and downs of the public markets. And you're probably fed up with underperforming the S&P 500 -- or worse, losing money -- on Wall Street.

Who could blame you?

And to make matters worse, publicly traded stocks have soared in recent years and are now trading at fresh all-time highs.

In fact, the most widely followed gauge of public stocks -- the S&P 500 -- has gained 77% over the last 3 years alone.

As a result, today's publicly traded stocks are downright expensive.

And this big run up in stocks has driven down dividend yields. The average yield for a stock in the S&P 500 today is just 2%.

So the information I'm about to give you is especially important in today's high-priced market.

Instead of being forced to invest in the same public market as everyone else, imagine the profits you could make if you invested in an entirely different kind of market -- the market for private companies.

This backdoor into the private markets could change the way you think about investing forever. You may never buy another overpriced public company again. Because here's something few investors know:private companies are almost always cheaper than public companies.

In fact, the average private stock sells for about 50% to 75% less than the typical public company. See this chart.

©Tom J. Keith & Associates, Inc.

P/E ratios jump once stocks switch from the private market to the public one. Small private companies have P/E's of just 2 to 5 versus P/E's of 10 to 22 for public companies. This shows the huge increase in wealth private investors can pocket when they sell their stocks to the public. We are trying to help our readers to get a piece of these firms when they are still private.

This is largely because of the lack of market liquidity. When there are fewer buyers available (remember -- only 6% of investors can access the private market), prices tend to be dirt cheap.

Not only are private stocks much cheaper than their public counterparts, but they usually grow faster too.

Wharton business school professor Andrew Metrick quantified this edge by comparing private and public companies.

He found that when companies choose to stay private instead of going public, they typically grow 15% faster during the first year, and they continue to outgrow public companies over the long haul.

Of course, there are exceptions. You can find some overpriced slow growers in the private market. But nine times out of 10, when you buy a stock in the private market you'll do better than a public investor will do later in the same stock.

Look at what happened with Groupon. It turned a trio of pals into billionaires. Eric Lefkofksy, Andrew Mason and Brad Keywell all hit the jackpot... because they owned shares before the company went public -- when they cost next to nothing and almost no one else was allowed in.

Lefkofksy is now worth around $4 billion. Mason and Keywell are worth around $1.3 billion each.

By contrast, investors who got on board Groupon after it went public have done lousy. Anyone who got in at the IPO a few years ago has lost more than half their money.

Like so many startups, Groupon made a fortune for its private investors but fizzled for the public.

Even a post-IPO success story like Google did better when it traded only in the private market.

Since it went public in 2004, Google stock has soared 1,000%.

But that's nothing compared to how much Google made investors when it traded in the private market.

Jeff Bezos, the founder of Amazon.com, invested $250,000 in Google privately. It's unclear if Bezos still owns the shares... but today that stake would be worth more than $3.6 billion. That's a return of nearly 14,600-to-1!

Normally, there is nothing you can do about it. Investors like you and me rarely get a piece of hot companies when they're in the early stages of their huge growth cycles. It's a market that just isn't available to the "regular guy."

But there IS one way to make money with companies like Facebook and Google well before they go public... when the big profits are banked... even if you aren't part of the fortunate 6%.

The secret involves BDCs. This little-known investment class lets anyone profit from privately held companies that are normally inaccessible to small investors. It's the only easy way to be an early investor in the next corporate giant.

And the best time to invest in BDCs is right now. In fact, the sooner you invest, the more money you could make.

"BDCs let small investors, like you and me, participate in private deals normally off limits to all but the wealthiest investors."

-- Daily Wealth

That's because BDCs typically deliver huge cash payments to their owners each year.

For example, over the past 12 months one of the investments I'm going to show you paid more than $344 million to its owners. Meanwhile, another dished out $56 million.

With each passing day, BDCs are generating more and more cash for their owners. You can either sit by and watch those fat paychecks go to someone else, or you can grab your fair share right now.

Invest today and this backdoor into the private market could shower you with cash year after year, even if you don't invest another cent down the road.

For example...

Mitt Romney stopped working in the private market 15 years ago, when he quit to run the Salt Lake City Winter Olympics. But he still gets millions of dollars each year. In fact, in 2012 Romney and his wife received about $21 million from the private investments they made years ago.

You know what else? Do it right and most of your income is taxed at just 15% instead of the 35% tax rate other big earners pay.

"These are options that are not available to the ordinary taxpayer," says Victor Fleischer, a law professor at the University of Colorado. "You're paying 15% on it instead of high marginal income rates."

However, you can also lose your shirt in the private market if you don't know what you're doing. Just ask the U.S. government, which invested $535 million in solar maker Solyndra and lost every penny.

The Beauty of Private Market Investing

The Clintons are smart, but they haven't racked up millions on brains alone. They've had a strong tailwind behind thembecause Bill Clinton worked in a special market where you almost always getter a better deal than public investors do.

According to Bloomberg News:

Former President Bill Clinton has earned $15.4 million from billionaire Ron Burkle's Yucaipa Cos. investment firm since 2003, according totax documentsreleased by his wife, presidential candidate Hillary Clinton.

And it wasn't just the Clintons making millions from this private firm.

Investors in the Los Angeles-based Yucaipa firm included the ruler of Dubai, Sheikh Mohammed Bin Rashid al-Maktoum. According to Forbes, the Sheikh has an estimated net worth of $18 billion and ranks #5 among the World's Richest Royals.

Private companies like Yucaipa are not only cheaper than the publicly traded stocks that most investors buy... they also grow faster and deliver better returns.

What investor wouldn't want to paddle downstream like that?

That's why I'm urging all my subscribers to take advantage of the backdoor I've found that lets anyone into this market.

Again, the special investments I'm talking about are called Business Development Companies (BDCs).

If you haven't heard of them, I'm not surprised. Only 40 exist... but they have made millions for smart investors. They provided start-up capital to some of today's brightest stars, including Google (Nasdaq: GOOG), Apple (Nasdaq: AAPL) and Intel (Nasdaq: INTC).

These vehicles open up a world that is usually closed to all but the very wealthy.

BDCs are a true rarity: an investment product that actually delivers on its promises.

Despite all the fee-heavy pipedreams that Wall Street bankers cook up to line their own pockets, every once in a while they come up with an idea that actually helps people... and works like it's supposed to. BDCs are one of these rare success stories.

There are no guarantees in investing, but as you'll see in a second, BDCs are making lots of investors unusually large profits.

Here's how a business development company works, in a nutshell. Like so many good ideas, it's actually very simple...

BDCs loan money to small, typically fast-growing private companies. In return, they get back high interest and often an equity stake.

So if a company rakes in huge profits or gets acquired by a larger firm, the BDC gets a piece of the action. And even if the company stays independent, the BDC gets such high interest on its loans that BDC investors can do very well.

Some BDCs invest in a wide range of private businesses, from restaurants to high-tech startups. Other BDCs specialize. Medallion Financial Corp (Nasdaq: TAXI), for example, loans money to taxicab companies...and pays its investors an 8.1% dividend yield.

Here's a good example of a typical BDC...

Triangle Capital Corporation (Nasdaq: TCAP) provides financing for small firms with revenues between $10 million and $200 million throughout the U.S. They target manufacturing, transportation and energy companies, typically investing $5 to $25 million at a shot.

As it turns out, providing loans and taking equity stakes in small private companies makes a great business model. With just 19 employees, Triangle managed to send out $61 million in dividends to its shareholders over the last 12 months. That's good enough to give the stock a 7.8% dividend yield. Even more impressive, Triangle Capital shareholders are up 153% over the past five years.

Believe it or not, that's a pretty standard return in this business. The way BDCs do it, investing in the private market isn't terribly risky.

Yes, BDCs lend money to start-ups, but no single investment can account for more than 25% of their portfolio. Most BDCs hold more than 50 different investments spread out over 20-plus industries.

BDCs must also revalue their portfolios every quarter, so no "hidden surprises" pop up down the road to blindside investors.

Another thing I like about BDCs is that they never get too far into debt. They can't, because they have to keep leverage low, by law. The highest debt-to-equity ratio allowed is 1:1. By comparison, investment banks often borrow 30 times their capital.

This is a smart rule. Imagine how much better off our country would be if everyone had put 50% down on their home mortgage loans. The housing crisis might never have happened... and virtually no one would be "underwater" on their homes.

As you can imagine, very few BDC investors are underwater over the past few years. It's hard to lose ground over the long haul when you're constantly pocketing yields of 8%... 10%... even up to 12.5%.

Considering today's historically low interest rates, the double-digit yields that many BDCs are dishing out look pretty attractive. What's more, as so many investors have happily discovered, when you reinvest such big dividends, you can rapidly accumulate an astounding amount of wealth.

Look at this list of BDCs that have been around at least three years. They've posted exceptional total returns for so short a time.

Business Development Company 3 Year Total Return
KCAP Financial (KCAP) 44%
Main Street Capital (MAIN) 113%
TICC Capital (TICC) 34%
Medallion Financial (TAXI) 82%
Blackrock Kelso Capital (BKCC) 23%

And this is just a small sample. In total, about two dozen different BDCs have been in existence for at least three years.

BDCs have crushed the broader market in recent years. And for reasons I'm about to explain, that outperformance should continue in the years ahead.

There Are Only 40 of These Opportunities... But They Yield up to 12.5%

Until 2003, only four publicly traded BDCs existed. Now there are 40 so it seems that the few investors who know about this opportunity like what they see.

This niche asset class not only gives you access to the private market I told you about earlier -- a market that is off-limits to the average investor -- but it also gives you some of the highest yields on the planet.

BDCs pass along almost all the income they earn, allowing them to pay great yields. Right now many of them are yielding above 10%... and a few are yielding above 12%.

These yields are powered by the high-interest loans BDCs make to the companies they invest in.

For example, BlackRock Kelso Capital charges its customers interest rates as high as 20%...with average rates around 12%.

The biggest BDC of all, American Capital Strategies (Nasdaq: ACAS), charges an average interest rate of 11.1% on its loans. No wonder its shareholders are up 59% in the past three years. That interest is a great head start... and a heck of a lot better than you can get from bonds, CDs or annuities.

But yields are also boosted because BDCs get a major tax break.

They pay zero income taxes as long as they derive at least 90% of their income from dividends, interest and capital gains... and as long as they distribute at least 90% of that income to shareholders.

Thanks to these and other advantages, BDCs are some of the highest-yielding securities on the market. The average BDC yields nearly 8% -- about 4 times higher than the S&P. And the most attractive BDCs are delivering yields of up to 12.5% right now.

In just a moment, I'll tell you how to get the names and ticker symbols of every single BDC on the market, along with their current dividend yields, sent directly to your email inbox. In the meantime, here's a sneak peak at a few of the highest-yielding BDCs on the market right now...

BDC Yield
MCG Capital Corp. (MCGC) 11.2%
KCAP Financial (KCAP) 12.2%
Pennant Park Investment (PNNT) 9.8%

When you see yields like these it's easy to understand why BDCs are up an average of 33% over the past three years. It's hard to lose ground as an investor when you're socking away such big dividends year after year.

And right now is a great time to start investing. Because even though many BDCs have delivered stellar gains, their winning streak should continue thanks to today's low interest rate environment.

Again... remember our discussion on how BDCs make their money.

BDCs lend money to private companies. In return, they often receive an equity stake, and they also charge a fee in the form of high interest rates.

Let me rephrase that... absurdly high interest rates.

For example, one of my favorite BDCs charges an average interest rate of 12.8% on its loans. I will tell you more about this BDC in just a moment, but for now let's just call it "BDC #1."

Meanwhile, the BDC I mentioned earlier, Triangle Capital, charges interest rates of up to 17%.

Compare those figures with 5-year Treasury notes, which yield just 1.65%. Or one-year CDs, which pay a pathetic 1.1%.

When interest rates are this low, it creates the perfect environment for BDCs because they can borrow money at low rates and lend it out at absurdly high rates.

The world's best BDCs are cashing in on this right now. And in a world of record-low interest rates, BDCs now rank as some of the most profitable businesses on earth.

For example, the New-York based BDC I mentioned a moment ago, BDC #1, is currently earning net profit margins of 47.4%. That's almost unheard of. In my 20 years of investing, I've never seen anything quite like it.

Not surprisingly, the firm has trounced the market in recent years:

BDC #1 also stacks up favorably compared to peers:

Thanks to today's low interest rate environment, as well as its favorable tax treatment, BDC #1's net profit margins are higher than virtually ALL of the most profitable and respected companies on earth, including Microsoft, Google and Apple.

In fact, the numbers aren't even close. BDC #1's profit margins are nearly twice as high as Apple's.

And right now BDC #1 boasts an annual dividend yield of 12.5%.

As you probably know, the Federal Reserve has pledged to keep interest rates near zero until the U.S. economy is back on its feet. As a result, BDCs should continue to deliver record profits in the coming years. That should give you plenty of time to capture double-digit yields and market-beating capital gains.

If you've just dabbled in the BDC market up until now, or if you've never invested in BDCs before, then there are a few critical things you need to know before you get started...

Read This Before You Invest a Cent in BDCs

All BDCs are not created equal. You can't just invest blindly in a basket of the highest-yielding BDCs, or those that have delivered the best returns in recent years.

On the whole, most of them are delivering big gains right now. But there's a huge performance gap between the best BDCs on the market and the few bad apples.

So before you invest a cent in BDCs, you need to know exactly what to look for.

Our research team has spent countless hours analyzing this market. And after careful research, we've identified a short list of criteria that will help you spot the best BDCs on the market.

Specifically, you need to look for companies that...

It takes a great deal of time and effort to do this type of analysis for dozens of companies.

And that's where we come in.

You see... our research team just put the finishing touches on a brand new research report entitled, "Everything You Need to Know About BDCs."

This report covers each and every BDC on the market using the criteria I just mentioned. It also reveals the names and ticker symbols of the 10 best-performing BDCs, as well as a description of every single BDC on the market, including their dividend yields.

Read this report and you'll not only become a smarter investor, but you'll learn exactly which BDCs to invest in, and which ones to avoid.

If you want to start profiting from the private market that made the Clintons and others countless millions, then you need to get a copy of our latest report, "Everything You Need to Know About BDCs."

Best of all, this report is yours free. I'll show you how to claim your copy in just a moment.

But first, I want to introduce you to a select pair of BDCs I think every investor should own immediately...

My Favorite BDCs Right Now

Out of all 40 BDCs out there, two in particular are my top picks right now.

This BDC Yields 12.5%

With a market capitalization of $3.4 billion, BDC #1 is among the nation's largest business development companies. The firm makes loans to mid-sized borrowers who need cash for acquisitions, growth projects and other business needs.

This company has $6.4 billion in portfolio investments. That capital is diversified among 133 companies representing 30 industries ranging from aerospace to electronics to pharmaceuticals.

BDC #1 is a dream come true for dividend hunters. The company has paid rising dividends since its creation ten years ago. And those payments are not only more generous than most, they're also more frequent. BDC #1 pays dividends every month -- instead of your typical quarterly dividends every 90 days.

Those monthly payments add up to a total of $1.32 per share each year, giving the stock a towering 12.5% dividend yield.

Meanwhile, the stock has delivered a 96% total return over the past five years.

The firm has been busy deploying $3.3 billion in fresh capital over the past 12 months. As income from these new investments starts to flow in, BDC #1 should have plenty of cash to keep boosting its dividend payments in the coming years.

The firm just finished its ninth year as a public company, and net investment income has risen every year -- exploding from $2.4 million in 2005 to $325 million in 2013.

That's a powerful compound growth rate of 84.7%.


Source: Company filings

This upward trend isn't ending anytime soon. With another $3.3 billion in fresh capital now hard at work, management expects to rake in $364.1 million in income in 2014.

And remember -- because it's classified as a BDC, this company is required to distribute 90% of those rising earnings to its shareholders. That could push BDC #1's dividend yield into the mid-teens.

Based on earnings projections, I believe BDC #1's stock has upside potential of 45%. When you add in the lofty 12.5% yield, the stock could potentially deliver a total return of 58% in the coming year.

This BDC Yields 11.4%

My other favorite BDC has grown revenue 424% since 2011, and raised its dividend 131%. With a current yield of 11.4% and a low P/E ratio of less than 8, it's easy to see why company insiders have been snapping up snares.

The firm's CEO purchased 8,312 shares during the last 15 months, with a total value of more than $100,000.

With net profit margins above 50%, this firm is a money-making machine.

And with current valuations close to book value, there has never been a better time to add this BDC to your portfolio.

I'll tell you everything you need to know about these two high-yielding BDCs -- including their names and ticker symbols -- in my brand new report, "Two Top BDCs Yielding Up to 12.5%" I'll show you how to get your FREE copy of this exclusive report in just a minute.

But first I want to show you how the wealthiest and most prestigious universities in the world have been cashing in on private companies for decades.

These Are the Same Private Markets That Ivy League Schools Use To Generate Billions

Wealthy individuals like the Clintons aren't the only ones cashing in on some of today's most lucrative privately held companies. As I'll show you in a moment, some of our nation's top universities -- including Harvard and Yale -- are also making a fortune in the private markets.

They're doing so by investing in another underground asset class.

I'm talking about private equity firms.

Similar to BDCs, private equity firms like Bain Capital and Carlyle Group (Nasdaq: CG) invest directly in some of today's fastest-growing private companies. But unlike BDCs, which primarily loan money to small private enterprises, private equity firms typically either purchase companies outright, or they invest in exchange for an equity stake.

And as these businesses grow, their private equity backers can get phenomenally rich.

For example, in 2006 Carlyle Group invested $882 million in Houston-based pipeline company Kinder Morgan. By the time Kinder went public in 2011, Carlyle's stake was worth $2.4 billion.

The same story goes for former presidential candidate Mitt Romney and his private equity firm, Bain Capital. In 2002 Bain joined forces with several other firms to purchase Burger King for $1.5 billion. Eight years later, they sold the popular fast food franchise for $3.3 billion, locking in a $1.8 billion profit.

But wealthy individuals like Mitt Romney aren't the only ones cashing in on these multi-billion-dollar deals. According to a study published by Harvard Business School, some of America's most prestigious institutions are also investing billions in private equity.

For example, between 1973 and 2013, Yale's endowment fund generated average annual returns of 29.9% in private equity. That includes a monster return of 168.5% in the year 2000, when Yale made $2.1 billion on its private equity investments.

Compare that 29.9% figure to the average gain of just 10.1% per year for the S&P over the same time period, and you start to see the type of impact private equity could have on your portfolio.

To give you an idea of the kind of income generated by Yale's portfolio...consider that in 2013 the university's endowment fund provided $1.2 billion, or 34%, of the University's $2.97 billion operating income.

Here's what Yale has to say about private equity...

"Private equity offers extremely attractive long-term risk-adjusted returns."

Source: Yale Endowment Fund -- annual report

Given the returns they've generated, it should come as no surprise that private equity now ranks as Yale's single largest holding. In fact, Yale invests twice as much money in private equity as it does in regular common stocks.

And Yale's performance isn't unique. Far from it.

Here's what Kiplinger's Personal Finance recently had to say...

"The potential payback on private-equity investments varies depending on who you ask. But with fat returns ranging between 16.4% annualized over ten years, according to one 2005 study by a British pension fund, and a mind-boggling 39% over the past 25 years (for the biggest private-equity funds), according to the industry's lobbying group, who wouldn't want in?"

The bottom line is that private equity firms have made countless fortunes over the years.

But until 2007, you couldn't invest directly in private equity unless you were either an elite institution like Yale, or you ranked among the richest 6% of all Americans.

But all of that changed in June 2007 when one of the largest players in this notoriously secretive industry made a surprising decision...

It decided to list its shares on the New York Stock Exchange.

After decades of being locked out of this market, the move opened the floodgates. At long last, millions of small investors like you and me finally have an opportunity to profit from fast-growing private companies alongside the Clintons, Yale University, and other big-shot investors.

And over the past few years, several other private equity firms have followed suit. For example...in May 2012 Carlyle Group began trading on the Nasdaq. This is the deal I mentioned earlier, which made each of its 99 partners instant millionaires and billionaires, with stakes valued from $3 million to $2 billion.

Thanks to these recent developments, you can now invest directly in a handful of the world's biggest and most lucrative private equity firms. And with each and every deal they make, you can reap the same rewards that the ultra-wealthy have already been enjoying for decades -- including steady, reliable 10%- plus dividends.

You probably won't become a multi-millionaire overnight, like the partners at Carlyle, but you'll have a chance to bank a tidy profit from some of America's fastest-growing private companies. And most importantly, you'll tap directly into the private market -- a market that's cheaper and higher-yielding than regular, ho-hum common stocks.

If you're sick and tired of the paltry returns delivered by regular common stocks, and if you're fed up with the market's gut-wrenching volatility, then it's time to try a different approach. It's time to start using private investments to increase your wealth and income.

For example...

In my latest report, "Your Backdoor into the Private Stock Market Where the Clintons Made $15.4 Million" I'll give you the names and ticker symbols of 3 firms yielding up to 8.5%. Not only do these firms pay high yields...one has managed to increase its dividend nearly 100% over the last 2 years.

All Three Reports Are Yours FREE

Hi...my name is Nathan Slaughter, and I'm one of the longest-serving investment analysts here at StreetAuthority. I've spent two decades researching and covering the financial markets, and during that time I've built up a track record making calls that have provided steady, high-yielding income for thousands of small investors across the country.

I've spent my entire career focused on the markets...

I first made my name at AXA/Equitable Advisors, one of the world's largest financial planning firms. I also honed my research skills at Morgan Keegan, where I managed millions in portfolio assets. My job was to help my clients fund their retirements using investments like the two BDCs yielding up to 12.5% I mentioned earlier.

As an investment strategist for High-Yield Investing , each month my in-depth analysis reaches thousands of serious income investors across the country.

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Twice a month this newsletter will introduce you to a handful of undiscovered stocks, funds, and other exotic instruments (like BDCs and private equity firms) that yield up to 12.5%

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Over the years, thousands of small investors across the country have profited from my research. Here's a brief look at a few of the winners my loyal High-Yield Investing readers have enjoyed...

One of my tax-advantaged monthly dividend payers currently yields almost 10%. This firm buys and develops oil and natural gas properties in the U.S. -- one of the hottest sectors in the world right now. Over the last 5 years share prices have gained 143%...and show no signs of slowing down.

Another pick has gained 459% since being added to the High-Yield Investing Portfolio. Yet the stock still sells for nearly half the price-to-earnings ratio of its peers. The firm's profit margins are a staggering 34.2% -- nearly 13% better than Apple's. But the company is 25 times smaller. The firm has also grown its dividend 48% over the last 5 years. its biggest gains still to come.

94%of my current picks are winners, and when it comes to identifying companies with high-yields, I'd put my track record up against any other analyst in the country.

And I'm not only making profitable calls for my readers on solid, high-yielding public companies I'm also showing them how to benefit from the private market investments I told you about earlier.

For example, remember my favorite BDC... the one I introduced you to a moment ago? I profiled this stock in the pages of High-Yield Investing last month. This BDC just announced its 77th consecutive cash distribution and is earning my readers a sky-high 12.5% dividend. To put that kind of yield in perspective, right now the average yield for stocks in the S&P 500 is about 2%.

I think all the BDCs in my portfolio will continue to beat the market and pay steady (and growing) distributions over the long haul. And thanks to today's low interest rate environment, they should deliver some of their biggest gains during the next year.

If you're ready to join me in my search for high-yield winners, and if my approach makes sense to you, then I invite you to join the thousands of investors across the country who have already subscribed to my premium advisory -- High-Yield Investing .

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Two Top BDC's Yielding Up to 12.5%
One of my favorite BDCs is a monthly dividend payer with a juicy 12.5% yield. And it shows no signs of slowing down. In fact, the firm recently announced its 77th consecutive payment.

The second BDC in this report has managed to grow revenue 543% since its inception in 2011. This has resulted in earnings per share growth of 116% and dividend growth of 297% over the last three years.

Everything You Need to Know About BDCs
This report covers each and every BDC on the market. It also reveals the names and ticker symbols of the 10 best-performing BDCs with current dividend yields up to 12.5%.

Your Backdoor into the Private Stock Market Where the Clintons Made $15.4 Million
This report gives you the inside scoop on today's best private equity firms. You'll get in-depth analysis of what makes these markets so special for investors in search of high-yield... including the names and ticker symbols of 3 firms yielding up to 8.5%. Not only do these firms pay high yields...one has managed to increase its dividend nearly 100% over the last 2 years.

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9 Dividend-Paying Companies You Should Own Now
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Many Happy Returns,


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P.S. -- If you want to start profiting from BDCs, as well as other companies with high and growing yields up to 12.5%, then you need to act now. The only way to get my in-depth research reports, including Everything You Need to Know About BDCs, Two Top BDCs Yielding Up to 12.5% and Your Backdoor into the Private Stock Market Where the Clintons Made $15.4 Million, as well as my twice monthly High-Yield Investing advisory, is to subscribe today at zero risk to you.

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