83 FR 49608 - BC Partners Lending Corporation, et al.; Notice of Application
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 191 (October 2, 2018)
Federal Register Volume 83, Issue 191 (October 2, 2018)
| Page Range | 49608-49613 | |
| FR Document | 2018-21375 |
[Federal Register Volume 83, Number 191 (Tuesday, October 2, 2018)] [Notices] [Pages 49608-49613] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-21375] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 33256; File No. 812-14860] BC Partners Lending Corporation, et al.; Notice of Application September 26, 2018. AGENCY: Securities and Exchange Commission (``Commission''). ACTION: Notice. ----------------------------------------------------------------------- Notice of an application for an order under sections 17(d) and 57(i) of the Investment Company Act of 1940 (the ``Act'') and rule 17d- 1 under the Act permitting certain joint transactions otherwise prohibited by sections 17(d) and 57(a)(4) of the Act and rule 17d-1 under the Act. SUMMARY OF APPLICATION: Applicants request an order to permit a business development company (``BDC'') and certain closed-end investment companies to co-invest in portfolio companies with each other and with affiliated investment funds. APPLICANTS: BC Partners Lending Corporation (the ``Company''), BCP Special Opportunities Fund I LP (the ``Private Fund''), and BC Partners Advisors L.P. (the ``Company Adviser''). FILING DATES: The application was filed on December 27, 2017, and amended on May 31, 2018 and September 12, 2018. HEARING OR NOTIFICATION OF HEARING: An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing by writing to the Commission's Secretary and serving applicants with a copy of the request, personally or by mail. Hearing requests should be received by the Commission by 5:30 p.m. on October 22, 2018 and should be accompanied by proof of service on applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to rule 0-5 under the Act, hearing requests should state the nature of the writer's interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by writing to the Commission's Secretary. ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F St. NE, Washington, DC 20549-1090. Applicants: 650 Madison Avenue, New York, New York 10022. FOR FURTHER INFORMATION CONTACT: Kieran G. Brown, Senior Counsel, at (202) 551-6773, or Kaitlin C. Bottock, Branch Chief, at (202) 551-6821 (Chief Counsel's Office, Division of Investment Management). SUPPLEMENTARY INFORMATION: The following is a summary of the application. The complete application may be obtained via the Commission's website by searching for the file number, or for an applicant using the Company name box, at http://www.sec.gov/search/search.htm or by calling (202) 551-8090. Applicants' Representations 1. The Company is a Maryland corporation organized on December 22, 2017. On April 23, 2018, the Company filed an election to be treated as a BDC \1\ [[Page 49609]] through a notification of election to be subject to sections 55 through 65 of the Act on Form N-54A. The Company filed a registration statement on Form 10 under the Securities Exchange Act of 1934, that became effective on April 23, 2018. The Company will not register its securities on Form N-2 in reliance on Regulation D under the 1933 Act. The Company's Objectives and Strategies will be to generate current income and, to a lesser extent, capital appreciation.\2\ The Company intends its investments to primarily take the form of debt investments, which may include secured debt, unsecured debt, other debt and/or equity in private middle-market companies. While the Company's primary focus will be on investments within the U.S., the Company may, on occasion, invest in foreign securities. The Company has a five-member board of directors (the ``Board''), of which a majority are not ``interested persons'' of the Company within the meaning of section 2(a)(19) of the Act (the ``Non-Interested Directors'').\3\ --------------------------------------------------------------------------- \1\ Section 2(a)(48) of the Act defines a BDC to be any closed- end investment company that operates for the purpose of making investments in securities described in section 55(a)(1) through 55(a)(3) of the Act and makes available significant managerial assistance with respect to the issuers of such securities. \2\ ``Objectives and Strategies'' means a Regulated Fund's (defined below) investment objectives and strategies, as described in the Regulated Fund's registration statement, other filings the Regulated Fund has made with the Commission under the Act, under the Securities Act of 1933 (the ``Securities Act''), or under the Securities Exchange Act of 1934, and in the Regulated Fund's reports to shareholders. \3\ No Director will be considered a Non-Interested Director with respect to a particular Co-Investment Transaction unless the Director has no direct or indirect financial interest in that Co- Investment Transaction (as defined below) or any interest in any portfolio company, other than through an interest in the securities of a Regulated Fund (as defined below). --------------------------------------------------------------------------- 2. The Private Fund was formed as a Cayman Islands exempted limited partnership and would be an investment company but for the exclusion from the definition of investment company provided by section 3(c)(7) of the Act. The Private Fund is managed by the Company Adviser. The Private Fund's investment objective is to make credit-oriented investments on an opportunistic basis. The Private Fund has investment objectives and strategies that overlap, to an extent, with those of the Company. 3. The Company Adviser, a Delaware limited partnership formed on March 29, 2017 and an investment adviser registered with the Commission under the Investment Advisers Act of 1940 (``Advisers Act''), serves as investment adviser to both the Company and the Private Fund, in each case, pursuant to an investment advisory agreement with such entity. Under the investment advisory agreements of the Company and the Private Fund, the Company Adviser manages the assets of each entity in accordance with the investment objective, policies and restrictions of each entity, makes investment decisions for each entity, monitors the investments of each entity, and provides each entity with such other investment advisory and related services that each entity may reasonably require for the investment of capital, subject, in the case of the Company, to the oversight of its Board. 4. Applicants seek an order (``Order'') to permit one or more Regulated Funds \4\ and/or one or more Affiliated Funds \5\ to participate in the same investment opportunities through a proposed co- investment program (the ``Co-Investment Program'') where such participation would otherwise be prohibited under section 57(a)(4) and rule 17d-1 by (a) co-investing with each other in securities issued by issuers in private placement transactions in which an Adviser negotiates terms in addition to price; \6\ and (b) making additional investments in securities of such issuers, including through the exercise of warrants, conversion privileges, and other rights to purchase securities of the issuers (``Follow-On Investments''). ``Co- Investment Transaction'' means any transaction in which a Regulated Fund (or its Wholly-Owned Investment Subsidiary) participates together with one or more other Regulated Funds and/or one or more Affiliated Funds in reliance on the requested Order. ``Potential Co-Investment Transaction'' means any investment opportunity in which a Regulated Fund (or its Wholly-Owned Investment Subsidiary) could not participate together with one or more Affiliated Funds and/or one or more other Regulated Funds without obtaining and relying on the Order.\7\ --------------------------------------------------------------------------- \4\ ``Regulated Fund'' means the Company and any Future Regulated Fund. ``Future Regulated Fund'' means any closed-end management investment company (a) that is registered under the Act or has elected to be regulated as a BDC, (b) whose investment adviser is an Adviser, and (c) that intends to participate in the Co-Investment Program. The term ``Adviser'' means (a) the Company Adviser and (b) any future investment adviser that controls, is controlled by or is under common control with the Company Adviser or its successor and is registered as an investment adviser under the Advisers Act. The term ``successor,'' as applied to each Adviser, means an entity that results from a reorganization into another jurisdiction or change in the type of business organization. \5\ ``Affiliated Fund'' means the Private Fund and any Future Affiliated Fund. ``Future Affiliated Fund'' means any entity (a) whose investment adviser is an Adviser, (b) that would be an investment company but for section 3(c)(1) or 3(c)(7) of the Act, and (c) that intends to participate in the Co-Investment Program. \6\ The term ``private placement transactions'' means transactions in which the offer and sale of securities by the issuer are exempt from registration under the Securities Act. \7\ All existing entities that currently intend to rely upon the requested Order have been named as applicants. Any other existing or future entity that subsequently relies on the Order will comply with the terms and conditions of the application. --------------------------------------------------------------------------- 5. Applicants state that a Regulated Fund may, from time to time, form one or more Wholly-Owned Investment Subsidiaries.\8\ Such a subsidiary would be prohibited from investing in a Co-Investment Transaction with any Affiliated Fund or Regulated Fund because it would be a company controlled by its parent Regulated Fund for purposes of section 57(a)(4) and rule 17d-1. Applicants request that each Wholly- Owned Investment Subsidiary be permitted to participate in Co- Investment Transactions in lieu of its parent Regulated Fund and that the Wholly-Owned Investment Subsidiary's participation in any such transaction be treated, for purposes of the requested Order, as though the parent Regulated Fund were participating directly. Applicants represent that this treatment is justified because a Wholly-Owned Investment Subsidiary would have no purpose other than serving as a holding vehicle for the Regulated Fund's investments and, therefore, no conflicts of interest could arise between the Regulated Fund and the Wholly-Owned Investment Subsidiary. The Regulated Fund's Board would make all relevant determinations under the conditions with regard to a Wholly-Owned Investment Subsidiary's participation in a Co-Investment Transaction, and the Regulated Fund's Board would be informed of, and take into consideration, any proposed use of a Wholly-Owned Investment Subsidiary in the Regulated Fund's place. If the Regulated Fund proposes to participate in the same Co-Investment Transaction with any of its Wholly-Owned Investment Subsidiaries, the Board will also be informed of, and take into consideration, the relative participation [[Page 49610]] of the Regulated Fund and the Wholly-Owned Investment Subsidiary. --------------------------------------------------------------------------- \8\ The term ``Wholly-Owned Investment Subsidiary'' means an entity (i) that is wholly-owned by a Regulated Fund (with the Regulated Fund at all times holding, beneficially and of record, 100% of the voting and economic interests); (ii) whose sole business purpose is to hold one or more investments and incur debt (which is or would be consolidated with other indebtedness of such Regulated Fund for financial reporting or compliance purposes under the Act) on behalf of the Regulated Fund; (iii) with respect to which the Regulated Fund's Board has the sole authority to make all determinations with respect to the entity's participation under the conditions of the application; and (iv) that would be an investment company but for sections 3(c)(1) or 3(c)(7) of the Act. --------------------------------------------------------------------------- 6. When considering Potential Co-Investment Transactions for any Regulated Fund, the applicable Adviser will consider only the Objectives and Strategies, Board-Established Criteria,\9\ investment policies, investment positions, capital available for investment (``Available Capital''), and other pertinent factors applicable to that Regulated Fund. The Board of each Regulated Fund, including the Non- Interested Directors has (or will have prior to relying on the requested Order) determined that it is in the best interests of the Regulated Fund to participate in the Co-Investment Transaction. --------------------------------------------------------------------------- \9\ ``Board-Established Criteria'' means criteria that the Board of a Regulated Fund may establish from time to time to describe the characteristics of Potential Co-Investment Transactions regarding which each Adviser to the Regulated Fund should be notified under condition 1. --------------------------------------------------------------------------- 7. Other than pro rata dispositions and Follow-On Investments as provided in conditions 7 and 8, and after making the determinations required in conditions 1(b) and 2(a), the Adviser will present each Potential Co-Investment Transaction that meets the Board-Established Criteria and the proposed allocation to the directors of the Board eligible to vote under section 57(o) of the Act (``Eligible Directors''), and the ``required majority,'' as defined in section 57(o) of the Act (``Required Majority'') \10\ will approve each Co- Investment Transaction prior to any investment by the participating Regulated Fund. No Eligible Director will have any direct or indirect financial interest in any Co-Investment Transaction or any interest in any portfolio company, other than indirectly through share ownership (if any) of the Regulated Funds. --------------------------------------------------------------------------- \10\ In the case of a Regulated Fund that is a registered closed-end fund, the Board members that make up the Required Majority will be determined as if the Regulated Fund were a BDC subject to section 57(o). --------------------------------------------------------------------------- 8. With respect to the pro rata dispositions and Follow-On Investments provided in conditions 7 and 8, a Regulated Fund may participate in a pro rata disposition or Follow-On Investment without obtaining prior approval of the Required Majority if, among other things: (i) The proposed participation of each Regulated Fund and Affiliated Fund in such disposition is proportionate to its outstanding investments in the issuer immediately preceding the disposition or Follow-On Investment, as the case may be; and (ii) the Board of the Regulated Fund has approved that Regulated Fund's participation in pro rata dispositions and Follow-On Investments as being in the best interests of the Regulated Fund. If the Board does not so approve, any such disposition or Follow-On Investment will be submitted to the Regulated Fund's Eligible Directors. The Board of any Regulated Fund may at any time rescind, suspend or qualify its approval of pro rata dispositions and Follow-On Investments with the result that all dispositions and/or Follow-On Investments must be submitted to the Eligible Directors. 9. Applicants also represent that if the Advisers, the principals of the Advisers (``Principals''), or any person controlling, controlled by, or under common control with an Adviser or the Principals, and the Affiliated Funds (collectively, the ``Holders'') own in the aggregate more than 25% of the outstanding voting shares of a Regulated Fund (the ``Shares''), then the Holders will vote such Shares as required under condition 14. Applicants believe this condition will ensure that the Non-Interested Directors will act independently in evaluating the Co- Investment Program, because the ability of the Advisers or the Principals to influence the Non-Interested Directors by a suggestion, explicit or implied, that the Non-Interested Directors can be removed will be limited significantly. Applicants represent that the Non- Interested Directors will evaluate and approve any such independent third party, taking into account its qualifications, reputation for independence, cost to the shareholders, and other factors that they deem relevant. Applicants' Legal Analysis 1. Section 57(a)(4) of the Act prohibits certain affiliated persons of a BDC from participating in joint transactions with the BDC or a company controlled by a BDC in contravention of rules as prescribed by the Commission. Under section 57(b)(2) of the Act, any person who is directly or indirectly controlling, controlled by, or under common control with a BDC is subject to section 57(a)(4). Applicants submit that each of the Regulated Funds and Affiliated Funds could be deemed to be a person related to each Regulated Fund in a manner described by section 57(b) by virtue of being under common control. Section 57(i) of the Act provides that, until the Commission prescribes rules under section 57(a)(4), the Commission's rules under section 17(d) of the Act applicable to registered closed-end investment companies will be deemed to apply to transactions subject to section 57(a)(4). Because the Commission has not adopted any rules under section 57(a)(4), rule 17d-1 also applies to joint transactions with Regulated Funds that are BDCs. Section 17(d) of the Act and rule 17d-1 under the Act are applicable to Regulated Funds that are registered closed-end investment companies. 2. Section 17(d) of the Act and rule 17d-1 under the Act prohibit affiliated persons of a registered investment company from participating in joint transactions with the company unless the Commission has granted an order permitting such transactions. In passing upon applications under rule 17d-1, the Commission considers whether the company's participation in the joint transaction is consistent with the provisions, policies, and purposes of the Act and the extent to which such participation is on a basis different from or less advantageous than that of other participants. 3. Applicants state that in the absence of the requested relief, the Regulated Funds would be, in some circumstances, limited in their ability to participate in attractive and appropriate investment opportunities. Applicants believe that the proposed terms and conditions will ensure that the Co-Investment Transactions are consistent with the protection of each Regulated Fund's shareholders and with the purposes intended by the policies and provisions of the Act. Applicants state that the Regulated Funds' participation in the Co-Investment Transactions will be consistent with the provisions, policies, and purposes of the Act and on a basis that is not different from or less advantageous than that of other participants. Applicants' Conditions Applicants agree that the Order will be subject to the following conditions: 1.(a) The Advisers will establish, maintain and implement policies and procedures reasonably designed to ensure that each Adviser is promptly notified, for each Regulated Fund the Adviser manages, of all Potential Co-Investment Transactions that (i) an Adviser considers for any other Regulated Fund or Affiliated Fund and (ii) fall within the Regulated Fund's then-current Objectives and Strategies and Board- Established Criteria. (b) When an Adviser to a Regulated Fund is notified of a Potential Co-Investment Transaction under condition 1(a), the Adviser will make an independent determination of the appropriateness of the investment for the Regulated Fund in light of the Regulated Fund's then-current circumstances. 2.(a) If the Adviser deems a Regulated Fund's participation in any Potential [[Page 49611]] Co-Investment Transaction to be appropriate for the Regulated Fund, the Adviser will then determine an appropriate level of investment for the Regulated Fund. (b) If the aggregate amount recommended by the applicable Adviser to be invested by the applicable Regulated Fund in the Potential Co- Investment Transaction, together with the amount proposed to be invested by the other participating Regulated Funds and Affiliated Funds, collectively, in the same transaction, exceeds the amount of the investment opportunity, the investment opportunity will be allocated among them pro rata based on each participant's Available Capital, up to the amount proposed to be invested by each. The applicable Adviser will provide the Eligible Directors of each participating Regulated Fund with information concerning each participating party's Available Capital to assist the Eligible Directors with their review of the Regulated Fund's investments for compliance with these allocation procedures. (c) After making the determinations required in conditions 1(b) and 2(a), the applicable Adviser will distribute written information concerning the Potential Co-Investment Transaction (including the amount proposed to be invested by each participating Regulated Fund and Affiliated Fund) to the Eligible Directors of each participating Regulated Fund for their consideration. A Regulated Fund will co-invest with one or more other Regulated Funds and/or one or more Affiliated Funds only if, prior to the Regulated Fund's participation in the Potential Co-Investment Transaction, a Required Majority concludes that: (i) The terms of the Potential Co-Investment Transaction, including the consideration to be paid, are reasonable and fair to the Regulated Fund and its stockholders and do not involve overreaching in respect of the Regulated Fund or its stockholders on the part of any person concerned; (ii) the Potential Co-Investment Transaction is consistent with: (A) The interests of the Regulated Fund's stockholders; and (B) the Regulated Fund's then-current Objectives and Strategies; (iii) the investment by any other Regulated Funds or Affiliated Funds would not disadvantage the Regulated Fund, and participation by the Regulated Fund would not be on a basis different from or less advantageous than that of any other Regulated Funds or Affiliated Funds; provided that if any other Regulated Funds or Affiliated Funds, but not the Regulated Fund itself, gains the right to nominate a director for election to a portfolio company's board of directors or the right to have a board observer or any similar right to participate in the governance or management of the portfolio company, such event shall not be interpreted to prohibit the Required Majority from reaching the conclusions required by this condition (2)(c)(iii), if: (A) The Eligible Directors will have the right to ratify the selection of such director or board observer, if any; (B) the applicable Adviser agrees to, and does, provide periodic reports to the Regulated Fund's Board with respect to the actions of such director or the information received by such board observer or obtained through the exercise of any similar right to participate in the governance or management of the portfolio company; and (C) any fees or other compensation that any Affiliated Fund or any Regulated Fund or any affiliated person of any Affiliated Fund or any Regulated Fund receives in connection with the right of the Affiliated Fund or Regulated Fund to nominate a director or appoint a board observer or otherwise to participate in the governance or management of the portfolio company will be shared proportionately among the participating Affiliated Funds (who each may, in turn, share its portion with its affiliated persons) and the participating Regulated Fund in accordance with the amount of each party's investment; and (iv) the proposed investment by the Regulated Fund will not benefit the Advisers, any Affiliated Funds or other Regulated Funds or any affiliated person of any of them (other than the parties to the Co- Investment Transaction), except (A) to the extent permitted by condition 13, (B) to the extent permitted by section 17(e) or 57(k) of the Act, as applicable, (C) indirectly, as a result of an interest in the securities issued by one of the parties to the Co-Investment Transaction, or (D) in the case of fees or other compensation described in condition 2(c)(iii)(C). 3. Each Regulated Fund has the right to decline to participate in any Potential Co-Investment Transaction or to invest less than the amount proposed. 4. The applicable Adviser will present to the Board of each Regulated Fund, on a quarterly basis, a record of all investments in Potential Co-Investment Transactions made by any of the other Regulated Funds or Affiliated Funds during the preceding quarter that fell within the Regulated Fund's then-current Objectives and Strategies and Board- Established Criteria that were not made available to the Regulated Fund, and an explanation of why the investment opportunities were not offered to the Regulated Fund. All information presented to the Board pursuant to this condition will be kept for the life of the Regulated Fund and at least two years thereafter, and will be subject to examination by the Commission and its staff. 5. Except for Follow-On Investments made in accordance with condition 8,\11\ a Regulated Fund will not invest in reliance on the Order in any issuer in which another Regulated Fund, an Affiliated Fund or any affiliated person of another Regulated Fund or Affiliated Fund is an existing investor. --------------------------------------------------------------------------- \11\ This exception applies only to Follow-On Investments by a Regulated Fund in issuers in which the Regulated Fund already holds investments. --------------------------------------------------------------------------- 6. A Regulated Fund will not participate in any Potential Co- Investment Transaction unless the terms, conditions, price, class of securities to be purchased, settlement date, and registration rights will be the same for each participating Regulated Fund and Affiliated Fund. The grant to an Affiliated Fund or another Regulated Fund, but not the Regulated Fund, of the right to nominate a director for election to a portfolio company's board of directors, the right to have an observer on the board of directors or similar rights to participate in the governance or management of the portfolio company will not be interpreted so as to violate this condition 6, if conditions 2(c)(iii)(A), (B) and (C) are met. 7.(a) If any Affiliated Fund or any Regulated Fund elects to sell, exchange or otherwise dispose of an interest in a security that was acquired in a Co-Investment Transaction, the applicable Advisers will: (i) Notify each Regulated Fund that participated in the Co- Investment Transaction of the proposed disposition at the earliest practical time; and (ii) formulate a recommendation as to participation by each Regulated Fund in the disposition. (b) Each Regulated Fund will have the right to participate in such disposition on a proportionate basis, at the same price and on the same terms and conditions as those applicable to the participating Affiliated Funds and Regulated Funds. (c) A Regulated Fund may participate in such disposition without obtaining prior approval of the Required Majority if: (i) The proposed participation of each Regulated Fund and each Affiliated Fund in such disposition is [[Page 49612]] proportionate to its outstanding investments in the issuer immediately preceding the disposition; (ii) the Board of the Regulated Fund has approved as being in the best interests of the Regulated Fund the ability to participate in such dispositions on a pro rata basis (as described in greater detail in the application); and (iii) the Board of the Regulated Fund is provided on a quarterly basis with a list of all dispositions made in accordance with this condition. In all other cases, the Adviser will provide its written recommendation as to the Regulated Fund's participation to the Eligible Directors, and the Regulated Fund will participate in such disposition solely to the extent that a Required Majority determines that it is in the Regulated Fund's best interests. (d) Each Affiliated Fund and each Regulated Fund will bear its own expenses in connection with any such disposition. 8.(a) If any Affiliated Fund or Regulated Fund desires to make a Follow-On Investment in a portfolio company whose securities were acquired in a Co-Investment Transaction, the applicable Advisers will: (i) Notify each Regulated Fund that participated in the Co- Investment Transaction of the proposed Follow-On Investment at the earliest practical time; and (ii) formulate a recommendation as to the proposed participation, including the amount of the proposed Follow-On Investment, by each Regulated Fund. (b) A Regulated Fund may participate in such Follow-On Investment without obtaining prior approval of the Required Majority if: (i) The proposed participation of each Regulated Fund and each Affiliated Fund in such investment is proportionate to its outstanding investments in the issuer immediately preceding the Follow-On Investment; and (ii) the Board of the Regulated Fund has approved as being in the best interests of the Regulated Fund the ability to participate in Follow-On Investments on a pro rata basis (as described in greater detail in the application). In all other cases, the Adviser will provide its written recommendation as to the Regulated Fund's participation to the Eligible Directors, and the Regulated Fund will participate in such Follow-On Investment solely to the extent that a Required Majority determines that it is in the Regulated Fund's best interests. (c) If, with respect to any Follow-On Investment: (i) The amount of the opportunity is not based on the Regulated Funds' and the Affiliated Funds' outstanding investments immediately preceding the Follow-On Investment; and (ii) the aggregate amount recommended by the applicable Adviser to be invested by the applicable Regulated Fund in the Follow-On Investment, together with the amount proposed to be invested by other participating Regulated Funds and Affiliated Funds, collectively, in the same transaction, exceeds the amount of the investment opportunity, then the investment opportunity will be allocated among them pro rata based on each participant's Available Capital, up to the amount proposed to be invested by each. (d) The acquisition of Follow-On Investments as permitted by this condition will be considered a Co-Investment Transaction for all purposes and subject to the other conditions set forth in the application. 9. The Non-Interested Directors of each Regulated Fund will be provided quarterly for review all information concerning Potential Co- Investment Transactions that fell within the Regulated Fund's then- current Objectives and Strategies and Board-Established Criteria, including investments in Potential Co-Investment Transactions made by other Regulated Funds or Affiliated Funds that the Regulated Fund considered but declined to participate in, and concerning Co-Investment Transactions in which the Regulated Fund participated, so that the Non- Interested Directors may determine whether all Potential Co-Investment Transactions and Co-Investment Transactions during the preceding quarter, including those Potential Co-Investment Transactions which the Regulated Fund considered but declined to participate in, comply with the conditions of the Order. In addition, the Non-Interested Directors will consider at least annually: (a) The continued appropriateness for the Regulated Fund of participating in new and existing Co-Investment Transactions, and (b) the continued appropriateness of any Board- Established Criteria. 10. Each Regulated Fund will maintain the records required by section 57(f)(3) of the Act as if each of the Regulated Funds were a BDC and each of the investments permitted under these conditions were approved by the Required Majority under section 57(f) of the Act. 11. No Non-Interested Director of a Regulated Fund will also be a director, general partner, managing member or principal, or otherwise an ``affiliated person'' (as defined in the Act) of an Affiliated Fund. 12. The expenses, if any, associated with acquiring, holding or disposing of any securities acquired in a Co-Investment Transaction (including, without limitation, the expenses of the distribution of any such securities registered for sale under the 1933 Act) will, to the extent not payable by the Advisers under their respective investment advisory agreements with Affiliated Funds and the Regulated Funds, be shared by the Regulated Funds and the Affiliated Funds in proportion to the relative amounts of the securities held or to be acquired or disposed of, as the case may be. 13. Any transaction fee \12\ (including break-up or commitment fees but excluding broker's fees contemplated by section 17(e) or 57(k) of the Act, as applicable) received in connection with a Co-Investment Transaction will be distributed to the participating Regulated Funds and Affiliated Funds on a pro rata basis based on the amounts they invested or committed, as the case may be, in such Co-Investment Transaction. If any transaction fee is to be held by an Adviser pending consummation of the Co-Investment Transaction, the fee will be deposited into an account maintained by such Adviser at a bank or banks having the qualifications prescribed in section 26(a)(1) of the Act, and the account will earn a competitive rate of interest that will also be divided pro rata among the participating Regulated Funds and Affiliated Funds based on the amounts they invest in such Co-Investment Transaction. None of the Affiliated Funds, the Advisers, the other Regulated Funds, or any affiliated person of the Regulated Funds or Affiliated Funds will receive additional compensation or remuneration of any kind as a result of or in connection with a Co-Investment Transaction (other than (a) in the case of the Regulated Funds and the Affiliated Funds, the pro rata transaction fees described above and fees or other compensation described in condition 2(c)(iii)(C); and (b) in the case of an Adviser, investment advisory fees paid in accordance with the investment advisory agreements between such Adviser and the Regulated Fund or Affiliated Fund). --------------------------------------------------------------------------- \12\ The applicants are not requesting, and the Commission is not providing, any relief for transaction fees received in connection with any Co-Investment Transaction. --------------------------------------------------------------------------- 14. If the Holders own in the aggregate more than 25% of the Shares of a Regulated Fund, then the Holders will vote such Shares as directed by an independent third party when voting on (1) the election of directors; (2) the [[Page 49613]] removal of one or more directors; or (3) any other matter under either the Act or applicable State laws affecting the Board's composition, size or manner of election. 15. Each Regulated Fund's chief compliance officer, as defined in rule 38a-1(a)(4), will prepare an annual report for the Board of such Regulated Fund that evaluates (and documents the basis of that evaluation) the Regulated Fund's compliance with the terms and conditions of the application and the procedures established to achieve such compliance. For the Commission, by the Division of Investment Management, under delegated authority. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-21375 Filed 10-1-18; 8:45 am] BILLING CODE 8011-01-P
![49608 Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Notices
furtherance of the purposes of the Act. comments more efficiently, please use SUMMARY OF APPLICATION: Applicants
The Exchange does not believe that the only one method. The Commission will request an order to permit a business
proposed change represents a significant post all comments on the Commission’s development company (‘‘BDC’’) and
departure from previous pricing internet website (http://www.sec.gov/ certain closed-end investment
programs offered by the Exchange or rules/sro.shtml). Copies of the companies to co-invest in portfolio
pricing offered by the Exchange’s submission, all subsequent companies with each other and with
competitors. Members may opt to amendments, all written statements affiliated investment funds.
disfavor the Exchange’s pricing if they with respect to the proposed rule APPLICANTS: BC Partners Lending
believe that alternatives offer them change that are filed with the Corporation (the ‘‘Company’’), BCP
better value. Accordingly, the Exchange Commission, and all written Special Opportunities Fund I LP (the
does not believe that the proposed communications relating to the ‘‘Private Fund’’), and BC Partners
change will impair the ability of proposed rule change between the Advisors L.P. (the ‘‘Company Adviser’’).
Members or competing venues to Commission and any person, other than FILING DATES: The application was filed
maintain their competitive standing in those that may be withheld from the on December 27, 2017, and amended on
the financial markets. public in accordance with the May 31, 2018 and September 12, 2018.
provisions of 5 U.S.C. 552, will be
C. Self-Regulatory Organization’s HEARING OR NOTIFICATION OF HEARING: An
available for website viewing and
Statement on Comments on the order granting the requested relief will
printing in the Commission’s Public
Proposed Rule Change Received From be issued unless the Commission orders
Reference Room, 100 F Street NE,
Members, Participants or Others a hearing. Interested persons may
Washington, DC 20549, on official
No written comments were either request a hearing by writing to the
business days between the hours of
solicited or received. Commission’s Secretary and serving
10:00 a.m. and 3:00 p.m. Copies of such
applicants with a copy of the request,
III. Date of Effectiveness of the filing will also be available for
personally or by mail. Hearing requests
Proposed Rule Change and Timing for inspection and copying at the principal
should be received by the Commission
Commission Action office of the Exchange. All comments
by 5:30 p.m. on October 22, 2018 and
received will be posted without change.
The foregoing rule change has become should be accompanied by proof of
Persons submitting comments are
effective pursuant to Section 19(b)(3)(A) service on applicants, in the form of an
cautioned that we do not redact or edit
of the Act 16 and paragraph (f) of Rule affidavit or, for lawyers, a certificate of
personal identifying information from
19b–4 thereunder.17 At any time within service. Pursuant to rule 0–5 under the
comment submissions. You should
60 days of the filing of the proposed rule Act, hearing requests should state the
submit only information that you wish
change, the Commission summarily may nature of the writer’s interest, any facts
to make available publicly. All
temporarily suspend such rule change if bearing upon the desirability of a
submissions should refer to File No.
it appears to the Commission that such hearing on the matter, the reason for the
SR–CboeBYX–2018–021 and should be
action is necessary or appropriate in the request, and the issues contested.
submitted on or before October 23,
public interest, for the protection of Persons who wish to be notified of a
2018.
investors, or otherwise in furtherance of hearing may request notification by
the purposes of the Act. For the Commission, by the Division of writing to the Commission’s Secretary.
Trading and Markets, pursuant to delegated
ADDRESSES: Secretary, U.S. Securities
IV. Solicitation of Comments authority.18
and Exchange Commission, 100 F St.
Interested persons are invited to Eduardo A. Aleman,
NE, Washington, DC 20549–1090.
submit written data, views and Assistant Secretary. Applicants: 650 Madison Avenue, New
arguments concerning the foregoing, [FR Doc. 2018–21364 Filed 10–1–18; 8:45 am] York, New York 10022.
including whether the proposal is BILLING CODE 8011–01–P
FOR FURTHER INFORMATION CONTACT:
consistent with the Act. Comments may Kieran G. Brown, Senior Counsel, at
be submitted by any of the following (202) 551–6773, or Kaitlin C. Bottock,
methods: SECURITIES AND EXCHANGE
Branch Chief, at (202) 551–6821 (Chief
COMMISSION
Electronic Comments Counsel’s Office, Division of Investment
[Investment Company Act Release No. Management).
• Use the Commission’s internet 33256; File No. 812–14860] SUPPLEMENTARY INFORMATION: The
comment form (http://www.sec.gov/
rules/sro.shtml); or following is a summary of the
BC Partners Lending Corporation, et application. The complete application
• Send an email to rule-comments@ al.; Notice of Application
sec.gov. Please include File No. SR– may be obtained via the Commission’s
CboeBYX–2018–021 on the subject line. September 26, 2018. website by searching for the file
AGENCY: Securities and Exchange number, or for an applicant using the
Paper Comments Company name box, at http://
Commission (‘‘Commission’’).
• Send paper comments in triplicate ACTION: Notice.
www.sec.gov/search/search.htm or by
to Secretary, Securities and Exchange calling (202) 551–8090.
Commission, 100 F Street NE, Notice of an application for an order Applicants’ Representations
Washington, DC 20549–1090. under sections 17(d) and 57(i) of the
Investment Company Act of 1940 (the 1. The Company is a Maryland
All submissions should refer to File No.
amozie on DSK3GDR082PROD with NOTICES1
‘‘Act’’) and rule 17d–1 under the Act corporation organized on December 22,
SR–CboeBYX–2018–021. This file
permitting certain joint transactions 2017. On April 23, 2018, the Company
number should be included on the
otherwise prohibited by sections 17(d) filed an election to be treated as a BDC 1
subject line if email is used. To help the
Commission process and review your and 57(a)(4) of the Act and rule 17d–1 1 Section 2(a)(48) of the Act defines a BDC to be
under the Act. any closed-end investment company that operates
16 15 U.S.C. 78s(b)(3)(A). for the purpose of making investments in securities
17 17 CFR 240.19b–4(f). 18 17 CFR 200.30–3(a)(12). described in section 55(a)(1) through 55(a)(3) of the
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![Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Notices 49613
removal of one or more directors; or (3) Disability’’; and the subsection, ‘‘Title blindness claims. SSR 18–02p rescinds
any other matter under either the Act or XVI—Specific Onset is Necessary,’’ and replaces two parts of SSR 83–20.
applicable State laws affecting the which is also under the section Specifically, SSR 18–02p rescinds and
Board’s composition, size or manner of ‘‘Technical Requirements and Onset of replaces the subsection, ‘‘Title II:
election. Disability,’’ as it applies to statutory Blindness Cases,’’ under the section,
15. Each Regulated Fund’s chief blindness claims. Therefore, SSR 83–20 ‘‘Technical Requirements and Onset of
compliance officer, as defined in rule is completely rescinded and replaced by Disability’’; and the subsection, ‘‘Title
38a–1(a)(4), will prepare an annual SSR 18–01p and SSR 18–02p. XVI—Specific Onset is Necessary,’’
report for the Board of such Regulated DATES: We will apply this notice on which is also under the section
Fund that evaluates (and documents the October 2, 2018. ‘‘Technical Requirements and Onset of
basis of that evaluation) the Regulated FOR FURTHER INFORMATION CONTACT: Dan Disability,’’ as it applies to statutory
Fund’s compliance with the terms and O’Brien, 410–597–1632, Dan.OBrien@ blindness claims. Therefore, as of
conditions of the application and the ssa.gov. For information on eligibility or October 2, 2018, the date this SSR was
procedures established to achieve such filing for benefits, call our national toll- published in the Federal Register, SSR
compliance. free number at 1–800–772–1213, or visit 83–20 is completely rescinded and
For the Commission, by the Division of our internet site, Social Security online, replaced by SSR 18–01p and SSR 18–
Investment Management, under delegated at http://www.socialsecurity.gov. 02p.
authority. SUPPLEMENTARY INFORMATION: Although
Purpose: This SSR explains what we
Eduardo A. Aleman, 5 U.S.C. 552(a)(1) and (a)(2) do not mean by EOD and clarifies how we
Assistant Secretary. require us to publish this SSR, we are determine the EOD in disability claims
[FR Doc. 2018–21375 Filed 10–1–18; 8:45 am] publishing it in accordance with 20 CFR under titles II and XVI of the Act.
402.35(b)(1). Specifically, it addresses how we
BILLING CODE 8011–01–P
We use SSRs to make available to the determine the EOD in claims that
public precedential decisions relating to involve traumatic, non-traumatic, and
the Federal old age, survivors, exacerbating and remitting impairments.
SOCIAL SECURITY ADMINISTRATION This ruling also addresses special
disability, supplemental security
[Docket No. SSA–2017–0047] income, and special veterans benefits considerations related to the EOD, such
programs. We may base SSRs on as work activity and previously
Social Security Ruling, SSR 18–01p; adjudicated periods. Additionally, this
determinations or decisions made in our
Titles II and XVI: Determining the SSR clarifies that an administrative law
administrative review process, Federal
Established Onset Date (EOD) in judge (ALJ) may, but is not required to,
court decisions, decisions of our
Disability Claims call upon the services of a medical
Commissioner, opinions from our Office
AGENCY: Social Security Administration. of the General Counsel, or other expert (ME), to assist with inferring the
interpretations of law and regulations. date that the claimant first met the
ACTION: Notice of Social Security Ruling
Although SSRs do not have the same statutory definition of disability.
(SSR).
force and effect as law, they are binding Citations: Sections 223 and 1614 of
SUMMARY: We are providing notice of on all components of the Social Security the Act, as amended; 20 CFR 404.130,
SSR 18–01p, which rescinds and Administration in accordance with 20 404.303, 404.315–.316, 404.320–.321,
replaces SSR 83–20, ‘‘Titles II and XVI: CFR 402.35(b)(1). 404.335–.336, 404.350–.351, 404.988–
Onset of Disability,’’ except as noted This SSR will remain in effect until .989, 404.1505, 404.1510, 404.1512–
here. This SSR clarifies how we we publish a notice in the Federal .1513, 404.1520, 404.1574, 416.202,
determine the EOD in disability claims Register that rescinds it, or until we 416.325, 416.905–.906, 416.910,
under titles II and XVI of the Social publish a new SSR in the Federal 416.912–.913, 416.920, 416.924,
Security Act (Act). Specifically, it Register that rescinds and replaces or 416.974, and 416.1488–.1489; 20 CFR
addresses how we determine the EOD in modifies it. part 404, subpart P, appendices 1 and 2.
claims that involve traumatic, non- (Catalog of Federal Domestic Assistance, Policy Interpretation
traumatic, and exacerbating and Program Nos. 96.001, Social Security—
remitting impairments. This ruling also Disability Insurance; 96.002, Social To be entitled to disability benefits
addresses special considerations related Security—Retirement Insurance; 96.004, under title II of the Act or to be eligible
to the EOD, such as work activity and Social Security—Survivors Insurance; for Supplemental Security Income (SSI)
previously adjudicated periods. 96.006, Supplemental Security Income.) payments based on disability under title
Additionally, this SSR clarifies that an XVI of the Act, a claimant must file an
administrative law judge may, but is not Nancy A. Berryhill, application, meet the statutory
required to, call upon the services of a Acting Commissioner of Social Security. definition of disability,1 and satisfy the
medical expert, to assist with inferring applicable non-medical requirements. If
Policy Interpretation Ruling we find that a claimant meets the
the date that the claimant first met the
statutory definition of disability. We Titles II and XVI: Determining the statutory definition of disability and
concurrently published a separate SSR, Established Onset Date (EOD) in meets the applicable non-medical
SSR 18–02p, ‘‘Titles II and XVI: Disability Claims requirements during the period covered
Determining the Established Onset Date We are providing notice of SSR 18– by his or her application, we then
(EOD) in Blindness Claims,’’ to discuss 01p, which rescinds and replaces SSR
amozie on DSK3GDR082PROD with NOTICES1
1 See 42 U.S.C. 423(d)(1)(A), 1382c(a)(3)(A); 20
how we determine the EOD in statutory 83–20, ‘‘Titles II and XVI: Onset of CFR 404.1505(a), 416.905(a) (defining disability for
blindness claims. SSR 18–02p rescinds Disability,’’ except as noted here. adults); 42 U.S.C. 1382c(a)(3)(C); 20 CFR 416.906
and replaces two parts of SSR 83–20. Concurrently, we published a separate (defining disability for children); see also 20 CFR
Specifically, SSR 18–02p rescinds and SSR, SSR 18–02p, ‘‘Titles II and XVI: 404.1520(a)(4), 416.920(a)(4) (setting forth the five-
step sequential evaluation we use to determine
replaces the subsection, ‘‘Title II: Determining the Established Onset Date disability for adults); 20 CFR 416.924 (setting forth
Blindness Cases,’’ under the section, (EOD) in Blindness Claims,’’ to discuss the three-step sequential evaluation we use to
‘‘Technical Requirements and Onset of how we determine the EOD in statutory determine disability for children).
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Document Created: 2018-10-02 01:19:30
Document Modified: 2018-10-02 01:19:30
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | The application was filed on December 27, 2017, and amended on May 31, 2018 and September 12, 2018. | |
| Contact | Kieran G. Brown, Senior Counsel, at (202) 551-6773, or Kaitlin C. Bottock, Branch Chief, at (202) 551-6821 (Chief Counsel's Office, Division of Investment Management). | |
| FR Citation | 83 FR 49608 |
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