SEC Reviews Star Mountain's Bid for Flexible Investor Fee Structures
Published Date: 7/8/2025
Notice
Summary
Star Mountain Lower Middle-Market Capital Corp. and its manager want permission to offer different types of shares with varying fees and sales charges. This change affects investors in their business development companies and could give them more choices on how to invest. If no one objects by July 28, 2025, the SEC will likely approve this new setup.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
BDCs may offer multiple share classes
Star Mountain Lower Middle-Market Capital Corp. filed an application on June 13, 2025 asking the SEC for permission to offer multiple classes of its business development company (BDC) shares. If the SEC does not receive a hearing request by 5:30 p.m. on July 28, 2025, the requested order will likely be issued, and investors in this BDC could have more choices about which share class to buy.
Share classes with varying fees
The applicants request permission for the BDC to issue share classes that carry varying sales loads and asset-based distribution and/or service fees. That means depending on which class you buy, you may face different upfront sales charges or ongoing asset-based fees.
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