SEC frees BDCs with no-action letter on risk retention

The SEC has issued a no-action letter that will allow Golub Capital and other middle market lenders to issue CLOs through a business development company (BDC) without falling foul of conflicting regulations covering risk retention and investment companies, a move that could be a further boost to US middle market corporate lending.

  • By David Bell
  • 11 Sep 2018

The SEC wrote to Golub Capital on Friday with a no-action letter that fixes a snag in the regulation of middle market firms looking to issue risk-retention compliant CLOs through a BDC structure.

The risk retention requirement was vacated for managers of open market CLOs in February ...

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