The average bank-loan mutual fund returned 73 percent in the period, Morningstar’s Bush said.
Level Field
Finra said in the Jan. 11 letter that it’s looking into the risks of both traded and non-traded business development companies. Nancy Condon, a spokeswoman for the Wall Street- funded regulatory group, declined to comment.
Since Franklin Square’s success, there have been a flurry of new non-traded business-development companies. CNL Financial Group Inc., a closely held real estate investment company based in Orlando, Florida, raised about $800 million for Corporate Capital Trust, which is managed by KKR, the New York-based private-equity firm, said Monty Hagler, a spokesman for CNL.
Andrew Hyltin, CEO of Corporate Capital Trust, said in an interview that the fees are fair and the securities give investors access to the same sophisticated strategies that pension funds use.
“Where else would a guy with $5,000 go to do that?” Hyltin said.