Business Development Companies: An Alternative Capital Source

Evaluating and Using BDCs to Finance Business Ventures

Recording of a 90-minute CLE webinar/teleconference with Q&A


Conducted on Tuesday, October 6, 2009
Recorded event now available


This seminar will review Business Development Companies, which are re-emerging as a capital-raising alternative for businesses. The panel will offer strategies for taking advantage of opportunities while minimizing legal risks for finance attorneys and counsel to private equity and venture funds.

Description

Businesses seeking capital are exploring Business Development Companies (BDCs) as a source of alternative funding since traditional bank and private equity financing is still unavailable.

BDCs offer a number of potential benefits. Investors can reap high potential yields and immediate liquidity through listed securities, while sponsors benefit from permanent capital and an established regulatory framework.

While BDCs can be an appealing option in the current environment, they are complex entities subject to SEC regulation and fraught with legal risk. Counsel advising investors must consider whether BDCs are suitable, and counsel for issuers must structure BDC offerings with great care.

Listen as our panel of experienced securities and tax attorneys explains how to take advantage of BDCs to raise capital for businesses and offers strategies for structuring financing deals while minimizing legal risks.

Outline

  1. Overview—what is a BDC?
    1. Becoming a BDC
    2. Types of investments
    3. Tax treatment of BDC
  2. Affiliate transactions
  3. Restrictions on investment practices
  4. Fees
  5. Disclosure requirements

Benefits

The panel will review these and other key questions:

  • What benefits and risks do BDCs offer as an alternative source of financing for businesses seeking capital?
  • What are the unique SEC requirements applicable to BDCs?
  • What best practices should counsel apply in representing BDCs and investors in BDC share offerings and debt financings?
  • What are the key tax issues to understand and consider when using BDCs?

Faculty

Thomas J. Friedmann, Partner
Dechert, Washington, D.C.

He is a partner in the firm's Corporate and Securities Group and focuses his practice on the representation of issuers and investment banks in public and private securities transactions. He advises corporate clients on matters relating to securities law, corporate governance, and general corporate matters, including financial restructuring and securitization transactions.

Cynthia M. Krus, Partner
Sutherland Asbill & Brennan, Washington, D.C.

She advises clients on a variety of corporate transactions including mergers and acquisitions, proxy contests, exchange and rights offerings, going-private transactions and reorganizations. She advises companies on the structure and formation of various entities and the establishment and operation of private and public venture equity, including business development companies (BDCs).

James G. Silk, Partner
Willkie Farr & Gallagher, Washington, D.C.

He has a broad corporate practice with particular focus in the investment management area. He counsels investment advisers, private equity and hedge funds, registered investment companies and business development companies across a broad spectrum of transactional and regulatory issues. He also provides advice on the formation and operation of alternative products and new product development.

Ordering

Online CLE - Audio Recording

Includes audio streaming of full program plus handouts (available 24 hours after live seminar).

CLE: Pre-approved for participatory or non-traditional/alternate format credit in: CA, HI*, NY*, WV*. Pre-approved for self-study credit in: AK, AZ, MO, MT, TX, VT, WA.
Upon request, also available in: CO, CT*, FL, GA, ID, KY, LA*, ME, NC, ND, NE, NH, NM, NV, OR*, SC, TN, UT, WI, WY. If you are applying for credit in one of these states, make sure to select those states when placing your order.
(*Indicates that Strafford must report attendance.)

Online CLE Audio $149.00
Available 24 hours after the live event

How does this work?


Recorded Event

Includes full event recording plus handouts (available after live seminar).

CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, HI, MO, MT, NY, TX, VT, WA, WV. Upon request, self-study credit is also available in: CO, FL, GA, ID, KY, ME, ND, NE, NH, NM, NV, OR, UT, WI, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com.

Webinar Download (Audio + Slide Presentation) $49.00
Available three business days after the live event

How does this work?

Webinar on DVD (audio + slide presentation) $49.00 plus $9.45 S&H
Available ten business days after the live event

MP3 Download (Audio Only) $49.00
Available 24 hours after the live event

How does this work?

Teleconference on CD (audio only) $49.00 plus $9.45 S&H
Available ten business days after the live event

Webinar/Teleconference

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Program Materials

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Program Materials

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Customer Reviews

I liked the substance of the program and the ease of participating.

Paul L. Hammann

First American Title Insurance Company

The seminar was very insightful with a terrific grasp of the relevant case law and legal issues.

Gregory Fox

Friedman Kaplan Seiler & Adelman LLP

All the speakers seemed extremely knowledgeable on the subject matter. Overall a very good seminar.

Stephan R. Silen

American AgCredit

This was an excellent teleconference; one of the best I have listened to. The speakers were all very knowledgeable on the subject, but importantly, they were able to present in a very direct, easy to listen to and understand style.

Jose E Guzman, Jr.

Nossaman

The topic covered was very timely, the program was well structured and I appreciated that the speakers addressed very recent issues.

Benjamin Brutlag

CSM

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Finance Law Advisory Board

Anne Lee Benedict

Partner

Gibson Dunn & Crutcher

Mark N. Berman

Partner

Nixon Peabody

Willa Cohen Bruckner

Partner

Alston & Bird

Laura D. Richman

Counsel

Mayer Brown

Robert M. Stern

Partner

O’Melveny & Myers

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