Tax & Finance

SEC Notice of Application for Order Permitting Co-Investments by BDCs and Affiliated Funds

🇺🇸United States··Notice·Medium Impact·View source ↗

AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.

🇬🇧 English

The U.S. Securities and Exchange Commission (SEC) issued a notice on April 1, 2026, regarding an application by Cypress Creek Private Strategies Master Fund, L.P., Endowment Advisers, L.P. (d/b/a Cypress Creek Partners), and affiliated entities. The applicants seek an exemptive order under sections 17(d) and 57(i) of the Investment Company Act of 1940, along with Rule 17d-1, to allow certain business development companies (BDCs) and closed-end management investment companies to co-invest in portfolio companies alongside each other and specific affiliated investment entities. This relief would override prohibitions on joint transactions under sections 17(d), 57(a)(4), and Rule 17d-1, enabling more efficient capital deployment. The application was originally filed on September 16, 2025, and amended on March 5, 2026. Full details, including representations, legal analysis, and proposed conditions, are in the amended application available on the SEC's EDGAR system via file number 812-15899. Interested parties can request a hearing by emailing Secretarys-Office@sec.gov with proof of service on applicants by 5:30 p.m. ET on April 27, 2026. Without such requests, the SEC will issue the order. Contact Jill Ehrlich or Adam Large at (202) 551-6825 for further information.

AI-generated summary. May contain errors. Refer to official sources for legal decisions.

Key Changes

  • Application filed September 16, 2025, amended March 5, 2026
  • Notice published April 1, 2026 under Release No. 36074, File No. 812-15899
  • Hearing requests due by 5:30 p.m. ET April 27, 2026

+ 2 more changes with Pro

Obligations

What this law requires

medium

Applicants must provide proof of service on all relevant parties when submitting hearing requests, in the form of an affidavit or certificate of service

Any interested parties submitting hearing requests
operational
high

Cypress Creek Private Strategies Master Fund, L.P., Endowment Advisers, L.P. (d/b/a Cypress Creek Partners), and affiliated entities must obtain an SEC exemptive order under sections 17(d) and 57(i) of the Investment Company Act of 1940 and Rule 17d-1 before engaging in co-investments between BDCs and affiliated funds

Cypress Creek Private Strategies Master Fund, L.P., Endowment Advisers, L.P., and affiliated entities
licensing
medium

Interested parties seeking a hearing on the exemptive order application must submit a written request to Secretarys-Office@sec.gov by 5:30 p.m. ET on April 27, 2026, with proof of service on applicants

Any interested parties opposing or requesting hearing on the application
reporting
medium

Hearing requests must include the file number (812-15899), state the nature of the requester's interest, relevant facts regarding desirability of hearing, reason for request, and contested issues

Any interested parties submitting hearing requests
disclosure
high

BDCs and closed-end management investment companies are prohibited from conducting joint transactions with affiliated entities under sections 17(d), 57(a)(4), and Rule 17d-1 unless granted an exemptive order

All business development companies (BDCs) and closed-end management investment companies
prohibition

Affected Parties

Business Development Companies (BDCs)Closed-end management investment companies+3 more…

Tags

SEC,Investment Company Act,BDCs