Business Development Company Update

Excessive fees lawsuit against adviser dismissed

KENNETH S. GERSTEIN, JOHN J. MAHON, PAMELA POLAND CHEN AND JESSICA A. FALZONE, SCHULTE ROTH & ZABEL

A decision issued on Jan. 24, 2017, in the U.S. District Court for the Southern District of New York dismissed a complaint alleging the payment of excessive advisory and administration fees by Prospect Capital Corporation (the “Fund”), a business development company (“BDC”) regulated under the Investment Company Act of 1940, as amended (the “1940 Act”). The litigation (“Prospect Capital”) involved a claim that fees received by the Fund’s investment...

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