Business development companies — known as BDCs — have become more and more compelling, not only as providers of capital to middle-market companies, but also as business opportunities for pr
Business development companies — known as BDCs — have become more and more compelling, not only as providers of capital to middle-market companies, but also as business opportunities for private equity and other alternative asset firms that want to expand their assets under management.
This special type of closed-end fund provides growing companies with increased access to capital, and enables private equity firms to access the public capital markets.
Traditional BDCs are publicly traded, with shares listed on one or more national exchanges and with a full complement of SEC filings. Today’s top 32 actively traded BDCs have over $29 billion in assets under management.
More recently, non-traded BDCs have emerged — using a structure similar to non-traded REITs where capital is raised in a continuous private offering, which eliminates market price volatility but creates illiquid securities.
If you’re among the many dozens of private equity firms, mezzanine funds, SBICs, and other alternative asset managers looking at the BDC model, or else if you’re part of an accounting or valuation firm that works with BDCs, you already know that the rules of the game are complex and critical to fully comprehend.
The procedures are neither obvious nor easy, and many of the rules and regulations can be interpreted in multiple ways.
There is no substitute for learning how BDCs operate from people who know the ins and outs.
And there’s no better place to do it than The Capital Roundtable’s brand NEW conference on “Best Practices for Launching & Managing a BDC.”
Now’s the time to reserve the date of Thursday, May 3, 2012, so you can attend.
This conference is being sponsored by the Washington, D.C.-based law firm Sutherland Asbill & Brennan LLP, which specializes in the formation, operation, and ongoing capital-raising requirements of BDCs.
And today, I have great news — James K. Hunt, Chairman, CEO, and CIO of THL Credit and THL Credit Advisors in Boston will chair this important event.
Jim has extensive experience providing capital for both public and private middle-market companies across most industries. Before founding THL Credit, he was managing partner and CEO of Bison Capital Asset Management LLC, a middle-market growth equity firm he co-founded in 2001. Previously, he was president of SunAmerica Corporate Finance and an executive vice president of AIG SunAmerica, managing an asset portfolio of over $8 billion. Jim’s first 15 years in credit led to his being named a senior credit officer at Citicorp.
This full-day conference on BDCs will be joined by an optional half-day workshop the day before, covering legal and regulatory issues for attendees who are new to BDCs.
