•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

By: Proskauer Rose LLP

On April 3, 2025, the U.S. Securities and Exchange Commission issued a notice indicating its intent to grant Franklin Square's exemptive relief application permitting certain business development companies and closed-end investment companies to engage in co-investment transactions under a new, simplified and principles-based framework. This framework departs from the more prescriptive traditional precedents and establishes a streamlined model for co-investment relief that is expected to give managers of Regulated Funds greater flexibility to engage in co-investment opportunities and enhance retail investor access to private markets.

Streamlining of Pre-Boarding Investment and Disposition Procedures

The FS Application simplifies the board review process for follow-on investments and dispositions by eliminating the distinction between transactions involving investments previously made by an affiliated fund outside of the co-investment program ("pre-boarding investments") and those made under the program. Under the prior framework, pre-boarding investments triggered enhanced board review and allocation procedures. The FS Application replaces this dual-track approach with a simplified framework that is agnostic to pre-boarding status.

For acquisitions, a Regulated Fund may acquire a security of an issuer in which an affiliated entity already holds an interest without Required Majority board approval if the Regulated Fund already h......................

To view our full article Click here