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IPA Responds to WSJ Article on Non-Traded BDCs

March 23, 2016

WSJ Assertion: Investors are requesting redemptions at a record pace.

IPA RESPONSE: Non-traded BDCs are providing liquidity to investors, as designed by prospectus.

  • The $72 million in total redemptions over Q2 and Q3 of 2015 – which the WSJ characterized as an “accelerating move to the exits” – represents just 3% of the $22 billion in total BDC assets in the same time period.
  • Anticipating that some investors may need liquidity before a program goes full-cycle, most non-traded BDCs open redemptions to 2.5% of assets quarterly, or 10% of assets annually.
  • Regarding the “record pace” of redemptions that the WSJ refers to – or $47 million in third quarter 2015 repurchases – consider the following:

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Loreen M. Gilbert, CIMA, AIF, CRC, CLTC – President, WealthWise Financial Services
Blue Vault
July 6, 2016

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