Summary of The “Private BDC” Alternative
- A private BDC is regulated as a business development company under the Investment Company Act of 1940 but conducts private offerings to accredited investors;
- Attractive option for asset managers that have robust stable of accredited investors;
- Attractive option for asset managers that lack a public track record;
- Private BDCs not subject to some of the restrictions that have limited fundraising by publicly-registered non-traded BDCs;
- Recent increase in filings by private BDCs;
- Eventual liquidity can be a listing, initial public offering, liquidation or merger.