SEC Notice for Joint Investments in Portfolio Companies
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This notice from the SEC allows certain business development companies and closed-end investment companies to co-invest in portfolio companies with affiliated entities. The change will enable these companies to engage in joint transactions that were previously restricted. Affected companies will need to take advantage of this order to strategically collaborate on investment opportunities.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Allows co-investment by business development companies and affiliated entities
- Facilitates joint transactions previously restricted
- Requires strategic collaboration for investment opportunities
Obligations
What this law requires
Business Development Companies (BDCs) must ensure compliance with the requirements of co-investing in portfolio companies with affiliated entities as stipulated under sections 17(d) and 57(i) of the Investment Company Act.
Interested parties must submit requests for hearings regarding the application for co-investing to the SEC's Secretary by 5:30 p.m., Eastern time, on May 5, 2026.
Applicants must notify the SEC's Secretary upon submitting requests for hearings by providing a proof of service in the form of an affidavit or a certificate of service.
Companies must refer to the third amended application filed on March 19, 2026, for all representations, legal analysis, and conditions associated with the application for the co-investment order.
If a hearing is requested, it must state the nature of the writer's interest and relevant facts in accordance with rule 0-5 under the Investment Company Act.