FR 2025-04647

The recent notice issued by the Securities and Exchange Commission (SEC) involves an application for an exemption submitted by Jefferies Credit Management LLC and Jefferies Credit Partners BDC Inc. The applicants, who operate as registered closed-end investment companies regulated as business development companies, seek permission to issue multiple classes of shares with varied sales loads and asset-based fees. This proposed exemption pertains to certain sections of the Investment Company Act of 1940.

General Summary

This notice serves as a public announcement about the exemption application and outlines how interested parties can request a hearing on the matter. The application process has been ongoing, with filings made in February and amendments in March 2025. The aim is to receive approval to implement a structure that allows flexibility in the fees and sales loads associated with different classes of shares.

Significant Issues and Concerns

One notable issue with the document is a lack of clarity on the rationale behind seeking exemption from Sections 18(a)(2), 18(c), 18(i), and 61(a) of the Investment Company Act of 1940. These sections govern the capital structure and distribution of investment companies, suggesting that any changes could have significant implications.

Additionally, the notice does not address potential impacts, either positive or negative, that granting such an exemption might have. This absence of discussion makes it hard to assess the broader consequences of such a decision.

While the procedural details for requesting a hearing are clearly outlined, the language and legal references could be overwhelming for individuals unfamiliar with such processes, making it less accessible to the general public who might be affected by these changes.

Impact on the Public

The application, if approved, might lead to significant changes in how investment companies structure their shares and associated fees. For the public, particularly investors, this could mean more choices regarding investment products, potentially leading to more tailored investment opportunities.

Impact on Stakeholders

For Jefferies Credit Management LLC and Jefferies Credit Partners BDC Inc., a favorable decision could provide a competitive edge in structuring their financial products, thereby attracting a broader base of investors. However, without more detailed information on investor protection measures, there might be concerns about transparency and fairness in the distribution of shares.

Potential negative impacts could be felt by investors if the exemption leads to increased complexity in fee structures, making it harder to compare investment options clearly. Conversely, if well-regulated, these changes might enhance flexibility and encourage more personalized investment strategies.

In summary, while the document lays out the procedural pathway for handling the application, it falls short in addressing the broader implications and providing a detailed justification for the requested exemptions. Engaging with these elements would be crucial to fully understanding how such a regulatory change might unfold in practice.