Business Development Company

Business development companies (“BDCs”) are closed-end management investment companies that elect to be subject to the provisions of Section 55 through 65 of the Investment Company Act, or 1940 Act. Investment companies that elect to be regulated as BDCs are subject to some, but not all, of the regulatory restrictions imposed by the 1940 Act. BDCs may be publicly traded or privately offered, invest primarily in small companies in the initial stages of development, and must offer significant managerial assistance to their portfolio companies.

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