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Business Development Companies Liquidity

Seward & Kissel LLP

Operating Business Development Companies: A Brief Overview

Seward & Kissel LLP on

Business development companies (“BDCs”) were created by Congress in 1980 to serve as closed-end, venture capital funds for retail investors by financing small to mid-sized U.S. private companies. Since about 2004, BDC...more

Goodwin

SEC Adopts New Regulatory Framework For Fund-Of-Funds Arrangements

Goodwin on

On October 7, 2020, the Securities and Exchange Commission (the "SEC") adopted Rule 12d1-4 under (the "Rule") the Investment Company Act of 1940 (the "1940 Act") and related amendments designed to put in place a comprehensive...more

Mayer Brown Free Writings + Perspectives

What’s the Deal? – Rights Offerings

In the midst of the economic downturn caused by the COVID-19 pandemic, companies facing liquidity issues may consider a rights offering. A rights offering provides a company’s stockholders an opportunity to subscribe for...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC COVID-19 Relief for Registered Funds and BDCs: A Summary

In recent weeks, the U.S. Securities and Exchange Commission (SEC) and market participants have dealt with the current and potential impact of the novel coronavirus COVID-19 pandemic. To help market participants remain in...more

Skadden, Arps, Slate, Meagher & Flom LLP

Federal Reserve Liquidity Programs to Support US Economy During COVID-19 Pandemic — Highlights for Funds and BDCs

In response to the ongoing market turmoil created by the coronavirus/COVID-19 pandemic, the Federal Reserve has established a number of market stability and liquidity programs, many of which may be of interest to funds (both...more

Mayer Brown Free Writings + Perspectives

New Liquidity Option for Private BDCs

On May 30, 2018, the Division of Investment Management of the Securities and Exchange Commission issued an exemptive order that permits private business development companies (“BDCs”) to conduct an exchange offer pursuant to...more

Eversheds Sutherland (US) LLP

“Phase two” for private BDCs - SEC permits liquidity for investors through split-off transaction

Private business development companies (BDCs) do not have publicly traded shares. For investors in these vehicles, liquidity opportunities take a number of forms....more

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