Business Development Companies: Forming, Financing and Investing in Alternative Capital Vehicles

Best Practices for Issuers, Asset Managers and Investors

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


Conducted on Thursday, August 13, 2015

Recorded event now available

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Program Materials

This CLE webinar will analyze the rise in permanent capital vehicles such as business development companies (BDCs) and discuss best practices for issuers and asset managers in forming and financing BDCs. The program will also discuss opportunities and pitfalls for investors in these alternative capital vehicles.

Description

Permanent capital vehicles such as BDCs have moved to the forefront as asset managers seek alternate ways to raise and invest capital. Since tightened lending regulations make it more difficult for small and middle market companies to secure loans, BDCs are an attractive source of financing.

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.

BDCs can be an appealing option in the current environment, but 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 corporate finance attorneys explains current market trends impacting business development companies, formation and financing of BDCs, and opportunities and pitfalls for investors in these alternative capital vehicles.

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Outline

  1. Current market trends impacting BDCs
  2. Forming a BDC
    1. Types of investments
    2. Tax treatment of BDCs
    3. Traded and non-traded structures
  3. Affiliate transactions
  4. Regulatory environment
  5. Fees and disclosure requirements
  6. Investing in a BDC

Benefits

The panel will review these and other key issues:

  • 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 structural and tax issues to understand and consider when using BDCs?
  • What are the opportunities and pitfalls for investors in BDCs?

Faculty

Thomas J. Friedmann
Thomas J. Friedmann

Partner
Dechert

Mr. Friedmann is a Partner in the firm's Corporate and Securities Group and focuses his practice on the...  |  Read More

Cynthia M. Krus
Cynthia M. Krus

Partner
Sutherland Asbill & Brennan

Ms. Krus advises clients on a variety of corporate transactions including mergers and acquisitions, proxy contests,...  |  Read More

James G. Silk
James G. Silk

Partner
Willkie Farr & Gallagher

Mr. Silk has a broad corporate practice with particular focus in the investment management area. He counsels investment...  |  Read More

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