Insights

Private Credit, Unlocked: The First ETF Focused Exclusively on BDC Bonds With Alex Oxenham & Mike O’Brien

Written by Hilton Capital Management | Aug 20, 2025 3:42:33 PM

Traditionally, the high-yield potential of private credit has been locked behind complex structures, limited liquidity, and opaque pricing. The newly launched Hilton BDC Corporate Bond ETF (HBDC) breaks that barrier—offering access to a powerful corner of the credit market that was once out of reach.

As the first exchange-traded fund (ETF) focused exclusively on Business Development Company (BDC) bonds, HBDC offers investors a new way to access a historically resilient segment of the credit market一with the transparency, daily liquidity, and ease of an exchange-traded fund.

We spoke with Hilton Capital Management CIO Alexander Oxenham and Investment Analyst Michael O'Brien, the team behind this innovative approach, about democratizing private credit access through a modern, rules-based ETF structure.


Index Criteria一Engineered for Institutional Quality

The Solactive Hilton Capital BDC Corporate Bond TR Index includes several thoughtful constraints to maximize diversification and liquidity:

  • 10% issuer cap with quarterly rebalancing: No single issuer can exceed 10% of the index, preventing undue concentration.
  • $250 million minimum issue size to ensure adequate liquidity for each bond.
  • Fixed-rate securities only: No floating-rate debt, convertibles, or complex structures一providing stability and potential appreciation in a declining rate environment.
  • ICE pricing requirement: All bonds must have readily available bid and offer pricing based on ICE data.
  • SEC registration requirement: Issuers must be registered with the SEC as BDCs to ensure transparency and regulatory oversight.


Important Disclosures:

Before investing you should carefully consider the Fund’s investment objective, risk, charges and expenses. This and other information is in the prospectus. A prospectus or summary prospectus may be obtained by visiting www.hiltonetfs.com or calling 1-833-594-4586. Please read the prospectus carefully before you invest.

Investing involves Risk, including possible loss of principal. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. There is no guarantee that the Fund’s investment strategy will be successful.

Investors buy and sell ETF shares through a brokerage account or an investment advisor. Like ordinary stocks, brokerage commissions, and/or transaction costs or service fees may apply. Please consult your broker or financial advisor for their fee schedule.

Credit Risk: Debt securities held by the Fund are subject to the risk that an issuer or related party (such as a guarantor or counterparty) may fail to meet its financial obligations. These failures can negatively impact the value of the investment and the Fund’s ability to receive expected income or principal repayments. Fixed Income & Interest Rate Risk: Fixed income respond to economic developments particularly interest rate changes, as well as to changes in an issuer’s credit rating. Fixed Income investments typically decline in value when interest rates rise and increase in value when rates fall. Longer-duration and lower-rated securities are generally more sensitive to these changes. Interest rate movements, including those driven by central bank policy, may also impact the Fund’s income. Index and Tracking Error Risk: As a passive fund, the Fund seeks to replicate the performance of its index. However, differences may arise due to fund expenses, trading activity, or index changes. The Fund may also hold securities not in the index or may not always be fully invested in index components.

Distributor: Foreside Fund Services, LLC