Adams Street fund wins SEC exemption for multi-class share issuance

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Adams Street SEC exemption

Highlights

On April 1, 2026, Adams Street Advisors filed for SEC exemption to allow multi-class share issuance with varying fee structures for its credit fund.
The SEC issued public notice on May 6, 2026, received no hearing requests, and approved the exemption as meeting investor protection requirements.
The ruling enables Adams Street Credit Solutions Fund to offer classes with different sales loads and fees, expanding structuring options for closed-end BDCs.

Exemption order and application timeline

As reported by the Securities and Exchange Commission, Adams Street Advisors, LLC and Adams Street Credit Solutions Fund filed their application on April 1, 2026, seeking relief under Section 6(c) of the Investment Company Act of 1940 from Sections 18(a)(2), 18(c), 18(i) and 61(a) of the Act. The relief permits eligible closed-end management investment companies that elect business development company status to issue multiple share classes with varying fee structures.

The SEC issued notice of the filing on May 6, 2026, under Investment Company Act Release No. 36143. That notice gave interested parties an opportunity to request a hearing and said the order would be issued unless a hearing was directed.

No hearing request was filed, and the Commission did not order one. On that basis, the SEC said the exemption is appropriate in the public interest and consistent with investor protection and the policy purposes of the Act.

Implications for fund structure and investor offerings

The order applies in the matter of Adams Street Advisors, LLC and Adams Street Credit Solutions Fund, File No. 812-16013, and grants the requested exemption subject to the conditions contained in the application. The decision gives the applicants flexibility to structure share offerings with different sales loads and ongoing service or distribution fees.

For the investment company sector, the exemption supports the use of differentiated share classes within certain closed-end funds operating as business development companies. That can broaden how managers tailor fee arrangements for different investor channels while remaining subject to the conditions set out in the underlying application.

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