News & Analysis as of

Business Development Companies Closed-End Funds

Seward & Kissel LLP

SEC Easing Conditions for Co-Investment Relief for BDCs and Closed-End Funds

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On April 3, 2025, the U.S. Securities and Exchange Commission (“SEC”) issued a notice of proposed exemptive relief to FS Credit Opportunities Corp. and its affiliates (Applicants), introducing more flexible co-investment...more

Skadden, Arps, Slate, Meagher & Flom LLP

Delaware Enacts Protections for Closed-End Fund Investors

On July 27, 2022, Delaware Gov. John Carney signed into law amendments to the Delaware Statutory Trust Act (DSTA). These amendments include the addition of new Subchapter III — Control Beneficial Interest Acquisitions...more

Kilpatrick

What’s in a Name? SEC Proposes Amendment to Names Rule for Investment Companies

Kilpatrick on

On May 25, 2022, the Securities and Exchange Commission (the “SEC”) announced proposed amendments (the “Proposal”) to Rule 35d-1 under the Investment Company Act of 1940 (the “Names Rule”), aimed at modernizing the Names Rule...more

Goodwin

Delaware Adopts Control Share Acquisition Statute for Registered Closed-End Funds and Business Development Companies Organized In...

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The state of Delaware recently amended the Delaware Statutory Trust Act to adopt a control share acquisition statute (the “Control Share Statute”) as an anti-takeover defense. Beginning on August 1, 2022, the effective date...more

Skadden, Arps, Slate, Meagher & Flom LLP

Delaware Proposes Protections for Closed-End Fund Investors

On May 5, 2022, Senate Bill 284 was introduced in the Delaware General Assembly proposing amendments to the Delaware Statutory Trust Act (DSTA).1 These amendments include the addition of new Subchapter III — Control...more

Eversheds Sutherland (US) LLP

SEC proposes amendments to expand the reach of the fund “Names Rule,” with a specific focus on ESG

On May 25, 2022, the US Securities and Exchange Commission (the SEC) proposed amendments (the Proposal) to Rule 35d-1 (the Rule) under the Investment Company Act of 1940, as amended (the 1940 Act). The Proposal comes over 20...more

Eversheds Sutherland (US) LLP

Coming soon: Structure data requirements for investment companies

On April 8, 2020, the Securities and Exchange Commission (the SEC) adopted rule amendments to require business development companies (BDCs) and closed-end funds registered under the Investment Company Act (Registered CEFs,...more

Skadden, Arps, Slate, Meagher & Flom LLP

Investment Management Update - December 2021

In this issue, we cover regulatory developments impacting the investment management sector, including proposed legislation supported by the Investment Company Institute to address challenges for closed-end funds; the...more

Dechert LLP

Reduced Cash Requirement in Part Stock and Part Cash Dividends: New IRS Guidance on RIC and REIT Distributions (UPDATED)

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On November 30, 2021, the U.S. Internal Revenue Service issued Revenue Procedure 2021-53, temporarily allowing publicly offered regulated investment companies (RICs), including certain business development companies (BDCs)...more

Skadden, Arps, Slate, Meagher & Flom LLP

Proposed Legislation Seeks To Prevent Regulatory Limitations on Closed-End Fund Investments in Private Funds

The Increasing Investor Opportunities Act (IIOA), introduced on November 19, 2020, by U.S. Representative Anthony Gonzalez (R-OH), aims to expand closed-end fund participation in private funds. The IIOA, among other things,...more

Eversheds Sutherland (US) LLP

What are DRMs and do you need one? SEC adopts framework for derivatives use by registered funds and BDCs

On October 28, 2020, the U.S. Securities and Exchange Commission (the SEC) voted 3-2 to adopt Rule 18f-4 (the Final Rule) under the Investment Company Act of 1940 (the 1940 Act), which establishes a comprehensive framework...more

Goodwin

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

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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

Eversheds Sutherland (US) LLP

A step forward: SEC streamlines fund of funds arrangements for BDCs and closed-end funds

On October 7, 2020, the US Securities and Exchange Commission (the SEC) announced that it voted to adopt new rule 12d1-4 (Rule 12d1-4) under the 1940 Act and related amendments (the Final Rule) to streamline and enhance the...more

Eversheds Sutherland (US) LLP

SEC proposes amendments to AFFE and advertisements: What this means for BDCs and the potential for a return to indexes

On August 5, 2020, the Securities and Exchange Commission (SEC) announced proposed modifications (the Proposed Rule) to the disclosure framework for mutual funds and exchange-traded funds (ETFs) registered on Form N-1A...more

Goodwin

Financial Services Weekly Roundup: SEC Proposes Modified Disclosure Framework For Funds

Goodwin on

In the News. The Securities and Exchange Commission (SEC) proposed modifying the disclosure framework for mutual funds and exchange-traded funds (funds), which would create a new layered disclosure regime that attempts to...more

Troutman Pepper Locke

Investment Management Update - June 2020

Troutman Pepper Locke on

SEC Grants Additional COVID-19 Relief to Business Development Companies - On April 8, the SEC issued an order granting relief to business development companies (BDCs) by permitting BDCs to issue and sell senior securities...more

Eversheds Sutherland (US) LLP

SEC opens door to statutory takeover defense for BDCs and closed-end funds

On May 27, 2020, the Staff (the Staff) of the Division of Investment Management (the Division) of the U.S. Securities and Exchange Commission (the SEC) issued a Staff Statement (the Staff Statement) reversing course on a...more

A&O Shearman

SEC Extends Securities Offering Reforms to Closed-End Funds and Business Development Companies

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On April 8, 2020, the Securities and Exchange Commission (SEC), adopted amendments that would allow business development companies (BDCs) and registered closed-end funds (CEFs), to use the securities offering rules that are...more

Dechert LLP

COVID-19 Coronavirus Business Impact: Repurchasing Equity and Debt: Potential Techniques and Pitfalls for BDCs and CEFs

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The uncertain economic environment surrounding the COVID-19 crisis has triggered a sharp decline in trading prices for the equity and debt securities of many business development companies (“BDCs”) and closed-end funds...more

Robinson & Cole LLP

Fund Valuations – A New Way to Keep Score

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The Securities and Exchange Commission (SEC) recently voted to propose a new Rule 2a-5 under the Investment Company Act of 1940 (1940 Act), which would provide for a new framework for funds’ fair value determinations when a...more

Dechert LLP

Reduced Cash Requirement in Part Stock and Part Cash Dividends: New IRS Guidance on RIC and REIT Distributions

Dechert LLP on

On May 4, 2020, the U.S. Internal Revenue Service issued Revenue Procedure 2020-19, temporarily allowing publicly offered regulated investment companies (RICs), including certain business development companies and certain...more

Dechert LLP

SEC Adopts Rules to Relax Registration, Communications and Offering Requirements for Business Development Companies and Registered...

Dechert LLP on

The U.S. Securities and Exchange Commission on April 8, 2020 adopted a package of reforms to the securities registration, offering and communications requirements under the Securities Act of 1933 applicable to business...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC Adopts Securities Offering Reforms for Business Development Companies and Registered Closed-End Investment Companies

On April 8, 2020, the Securities and Exchange Commission (SEC) voted to adopt a series of rule and form amendments that are intended to modernize the registration, communication and offering processes for business development...more

Eversheds Sutherland (US) LLP

In harmony at last: SEC passes securities offering reform for BDCs and registered closed-end funds

On April 8, 2020, the Securities and Exchange Commission (the SEC) voted, at its first virtual meeting, to adopt rule amendments to implement certain provisions of the Small Business Credit Availability Act (the BDC Act) and...more

Faegre Drinker Biddle & Reath LLP

SEC Amends Offering and Registration Processes for Closed-End Funds and Business Development Companies

On April 8, 2020, the Securities and Exchange Commission (SEC) voted 3-1 to adopt certain rule amendments (the Final Rule) that will modify and streamline the securities offering and communication processes for business...more

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