As business development companies (BDCs) grow in popularity, the role of their independent directors grows in importance. Here we look at the increasingly important role that BDC independent directors play and how their responsibilities differ from the responsibilities of independent directors to traditional investment companies. To read the full alert, click here.
A congressionally mandated budget report may ring the death knell for proposed legislation that would increase the leverage limit for business development companies (BDCs). The April 10, 2014 report by the Congressional Budget Office (CBO) estimates that the Small Business Credit Availability Act, H.R. 1800, if enacted, would cost taxpayers $354 million over the next… Read More
In two recent no-action letters, the SEC staff expanded the ability of business development companies (BDCs) to invest in registered investment advisers. Although Section 12(d)(3) of the Investment Company Act of 1940 generally prohibits a registered investment company – including a closed end fund that elects to be treated as a BDC – from acquiring… Read More
Three bills introduced in the House of Representatives that would ease leverage restrictions on business development companies (BDCs) face an uncertain future in light of concerns expressed by the Chair of the Securities and Exchange Commission. BDCs are closed-end investment companies that invest in small-and medium-sized private companies. H.R. 1800, the Small Business Credit Availability… Read More