SEC Seeks Comments on Order to Allow Co-Investments by BDCs and Closed-End Funds
Business development companies and closed-end management investment companies may co-invest pending an SEC order; hearing requests due Sept. 14, 2026.
The Securities and Exchange Commission published a notice (Investment Company Act Release No. 36307; File No. 812-15981) on August 19, 2026 announcing an application for an order under sections 17(d) and 57(i) of the Investment Company Act of 1940. The order would permit certain business development companies (BDCs) and closed-end management investment companies to co-invest in portfolio companies with each other and with affiliated investment entities, transactions otherwise prohibited by sections 17(d) and 57(a)(4) and rule 17d-1.
Applicants include Pender Real Estate Credit Fund; PC ABL SMA 1, L.P.; Pender Capital Management, LLC; and affiliated entities listed in Schedule A. The original application was filed on January 30, 2026 and amended on July 28, 2026. The SEC states that an order granting the requested relief will be issued unless a hearing is ordered.
Interested persons may request a hearing by emailing the SEC's Secretary and serving the applicants, or by mail or personal delivery where an email address is not listed. Hearing requests must be received by 5:30 p.m., Eastern Time, on September 14, 2026, and must include proof of service. Requests should state the writer's interest, relevant facts, the reason for the request, and the contested issues, per rule 0-5.
Contact information for the applicants is listed as Joshua B. Deringer, Esq., and Gwendolyn A. Williamson, Esq., of Faegre Drinker Biddle & Reath LLP. SEC contacts are Thomas Ahmadifar, Branch Chief, and Stephan N. Packs, Senior Counsel, reachable at (202) 551-6825. The amended application and related materials are available through the SEC's EDGAR system using the file number referenced in the notice.
Further reading