April 12, 2016
A $2.5 Billion Business-Development-Corporation Fund Halts Redemptions After Limit Reached
Volatile markets have prompted rush of investors to exit nontraded business development companies Updated April 10, 2016 7:51 p.m. ET | By KIRSTEN GRIND and JEAN EAGLESHAM | WSJ It …

Read more

Volatile markets have prompted rush of investors to exit nontraded business development companies

Updated April 10, 2016 7:51 p.m. ET | By KIRSTEN GRIND and JEAN EAGLESHAM | WSJ

It was never easy for investors to get their money out of funds called nontraded BDCs, but it is getting even harder now.

Business Development Corporation of America, a $2.5 billion fund, said in a securities filing last month that it is halting redemptions for the quarter after the fund’s pre-established limit was hit. The move came after a particularly rough period for the U.S. junk-bond market, including energy-related debt, toward the end of last year and beginning of this year.

Even in normal times, nontraded business development companies typically only allow investors to cash out every three months. This, however, appears to be the first time one has bumped up against internal restrictions that limit the amount of shares a fund is able to redeem at one time, experts say.

The fund had limited redemptions to 2.5% of its shares outstanding per quarter, which is typical for its peers.

A spokesman for BDCA declined to comment.

Article Located Here

Recent

Eagle Point Credit Creditflux Awards

Eagle Point Credit Creditflux Awards

Eagle Point won 48% of the vote for “Best US CLO Equity Investor” and 42% of the vote for “Best US CLO Junior Debt Investor”.

Most Popular

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…
Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now