According to an article posted on CFO.com, Goldman Sachs is entering into middle-market lending. The article states that Goldman filed a preliminary registration statement on Friday to list shares in Liberty Harbor Capital, a type of lending vehicle called a business development company (BDC). BDCs are publicly held firms that by law must distribute 90% of their profits to shareholders.

Acccording to the article, Goldman’s interests in this lending sector are based upon the company's belief that loans to middle-market companies are illiquid and unrated, making them increasingly unattractive to commercial banks.  Additionally, Goldman says, since the financial crisis, the amount of capital available to middle-market borrowers through the shadow-banking sector – which includes hedge and mezzanine funds, private equity firms, and structured vehicles – has shrunk significantly, thus diminishing competition in this sector.
 
Goldman defines middle-market as companies with EBITDA (earnings before interest, taxes, depreciation, and amortization) of between $5 million and $75 million annually.