Modernization of BDCs Boosts Industrys Role in Financing American Growth
Summary
As a result, BDCs will be brought in line with the same prudent and safe rules already established by Congress and regulators for other 1934 Act public reporting companies.He went on to add, "The real winners here are Americas small and mid-size businesses that will have access to additional growth capital resulting in meaningful domestic investments and job creation.They also provide individuals with investment opportunities in private companies historically available only to institutional and wealthy investors, through a highly transparent structure subject to oversight by the U.S. Securities and Exchange Commission, states and other regulators."Congress created BDCs in 1980 to encourage the establishment of public vehicles to increase the flow of capital to small, growing U.S. businesses.The IPA supports individual investor access to a variety of Portfolio Diversifying Investment (PDI) products with low correlation to the traded markets and historically available only to institutional investors, including: lifecycle real estate investment trusts (REITs), NAV and perpetual life REITs, business development companies (BDCs), interval and closed-end funds, energy and equipment leasing programs and real estate private equity offerings.