FR 2025-04810

The document from the Federal Register details a notice issued by the Securities and Exchange Commission (SEC), involving an application from Carlyle Global Credit Investment Management L.L.C. and Carlyle Credit Solutions, Inc. The application seeks an exemption from certain provisions of the Investment Company Act of 1940. Specifically, the applicants wish to be allowed to issue multiple classes of shares with varying sales loads and distribution or service fees. This notice is a formal step in the regulatory process, inviting public participation and potentially leading to the granting of this exemption unless a hearing is requested by a specified deadline.

General Summary

This notice informs the public that the SEC has received a request for an exemption to certain sections of the Investment Company Act of 1940. The applicants, Carlyle Global Credit Investment Management L.L.C. and Carlyle Credit Solutions, Inc., aim to issue different types of shares that could feature a variety of fee structures. This application, initially submitted in late February 2025 and revised in mid-March, could receive approval unless objections are raised by the designated deadline.

Issues and Concerns

There are several issues and concerns worth noting within this document:

• Lack of Explanation: The notice does not clearly explain why the exemption from the specific sections of the Act is necessary. This omission leaves readers without a clear understanding of the rationale behind the request.

• Potential Conflict of Interest: The specific naming of the applicants might raise questions of preferential treatment. It is essential for the SEC to maintain transparency and ensure that no entity receives undue advantage.

• Complex Hearing Request Procedure: The process to request a hearing is described in a way that may be difficult for the average person to understand. Legal language can be dense, potentially discouraging public engagement.

• Absence of Public Discussion: The document lacks discussion of the public benefits or drawbacks associated with granting the exemption. Such information could help the public better understand the implications.

Impact on the Public

Broadly, this document may have several implications for the general public. If the exemption is granted, it could influence how investment companies offer their shares, potentially affecting the diversity and costs of investment options available to consumers. However, without a clear explanation of the need for the exemption, the public may find it challenging to see how they could benefit or be disadvantaged by this change.

Impact on Stakeholders

For the applicants, a positive outcome in the form of a granted exemption could allow them to offer more competitive or innovative financial products, potentially increasing their market share and profitability. On the other hand, other stakeholders, such as competitors or different entities within the investment industry, might view this as setting a precedent that could impact industry standards or practices.

Legal professionals, investors, and other stakeholders interested in regulatory processes might find the lack of explicit reasoning and public interest discussion as significant shortcomings of the document. These omissions highlight the need for ongoing public dialogue and transparency in regulatory matters.

In summary, while the document serves a procedural function in the regulatory landscape, it raises important questions about transparency, public engagement, and the impacts of regulatory exemptions on broader market practices.