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Cox Capital Partners Launches Pilot Lending Program for Non-Traded BDC Shareholders

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Cox Capital Partners Launches Pilot Lending Program for Non-Traded BDC Shareholders

Cox Capital Partners (“Cox Capital”), a provider of secondary liquidity solutions for retail private market investors, announced a pilot lending program designed to give eligible shareholders of non-traded business development companies (BDCs) access to cash while they continue to seek repurchases at Net Asset Value (NAV).

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“Some shareholders need to exit immediately and are willing to accept our bid. Others would prefer to borrow against their investments while continuing to seek redemptions at NAV. Our goal is to serve both groups.”

The pilot, the first of its kind in the secondaries market, is designed to allow eligible investors to borrow up to 65% of their holdings’ NAV, with loans expected to carry a fixed interest rate. Cox Capital will manage the process of submitting these shares for repurchase through the underlying fund’s regular redemption process. Proceeds from share repurchases at NAV will be applied toward repayment of the loan, and any distributions exceeding interest obligations will be returned to the shareholder.

The initial pilot is designed to target the largest shareholders, with positions of $1 million or more in non-traded BDCs managing more than $1 billion in assets. Positions of that size are a small fraction of shareholder accounts, typically around 1% to 5%. Cox Capital’s tender offers remain the primary liquidity option for the large majority of shareholders, and the lending program is designed to complement them.


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