The Securities and Exchange Commission (SEC) issued a notice regarding an application for an order that would allow specific business development companies (BDCs) and closed-end investment companies to collaborate on investments that are usually prohibited by the Investment Company Act of 1940. The applicants, which include various Goldman Sachs entities, are seeking permission to co-invest in portfolio companies alongside certain affiliated investment entities. The SEC has outlined a process for interested parties to request a hearing concerning this application by May 20, 2025. Further details and the applicants' complete legal analysis can be accessed through the SEC's website.
Simple Explanation
In this notice, the Securities and Exchange Commission (SEC) is thinking about allowing some companies, like Goldman Sachs, to join forces and invest together in ways they're not usually allowed to. People have until May 20, 2025, to tell the SEC what they think about this idea.