Aug 08, 2023

BDC Arranger Fee

This is probably a dumb question. If an investment advisor of a BDC (BN, Ares, or whatever) earns an arrangement fee from a new loan (not an upfront fee) and allocates this investment across their BDCs, who actually gets paid the arrangement fee? Is it the investment advisor or the BDC?

I work at a bank and all arrangement fees are paid to a non-bank entity.

 

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