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:
The well-attended Blue Vault session at the recent National Planning Holdings National Conference was very well received. The value of their products was evidenced by the volume of questions from the attendees. Stacy Chitty, Managing Partner, did an excellent job of explaining the history, strategy and value of Blue Vault data.