The U.S. Securities and Exchange Commission (SEC) on April 3 issued notice of its intent to grant co-investment relief (the New Relief)1 that would be a significant modernization and simplification of the current status quo for registered closed-end funds (including interval and tender offer funds) and business development companies (collectively, Regulated Funds). The notice period will run until April 28, 2025, and barring a hearing request, relief would normally be issued on or about April 29, 2025. If granted, the New Relief would supersede the applicant’s prior co-investment exemptive relief.
The SEC staff has informally indicated their expectation that once the New Relief is granted, substantially identical applications submitted by others will be reviewed and granted in an expedited manner, and a number of sponsors have already submitted such applications in anticipation of the New Relief being granted.
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1 FS Credit Opportunities Corp, et al. (File No. 812-15706), Release No. IC-35520 (April 3, 2025) (notice).
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