SEC grants GoldenTree co-investment relief for affiliated funds

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SEC grants GoldenTree co-investment relief

Highlights

On May 12, 2026, the SEC granted immediate co-investment relief to GoldenTree funds following applications filed in September 2025 and March 2026.
The order allows registered closed-end funds and business development companies affiliated with GoldenTree to co-invest in portfolio companies under specified conditions.
The relief, effective without a hearing, expands co-investment flexibility for regulated funds and affiliated vehicles while maintaining compliance with the Investment Company Act.

Order clears co-investment structure

As reported by the Securities and Exchange Commission, the order follows an application filed by GoldenTree Opportunistic Credit Fund, et al. on September 25, 2025, and an amended filing submitted on March 24, 2026. The requested relief was made under sections 17(d) and 57(i) of the Investment Company Act of 1940 and rule 17d-1, covering joint transactions that would otherwise be prohibited.

The relief applies to certain registered closed-end management investment companies and business development companies, described in the order as Regulated Funds. It permits those funds to co-invest in portfolio companies with each other and with certain affiliated investment entities, subject to the conditions contained in the application as amended.

On May 12, 2026, the SEC issued a notice of the filing under Investment Company Act Release No. 36149 and gave interested parties an opportunity to request a hearing. No hearing request was filed, and the Commission did not order a hearing before granting the relief effective immediately.

Implications for fund operations

The Commission states that, based on the information set out in the application, participation by the Regulated Funds in the proposed transactions is consistent with the provisions, policies and purposes of the Act. It also finds that the basis of participation is no less advantageous than that of other participants.

The order was issued under delegated authority by the Division of Investment Management and is identified as File No. 812-15904. For credit funds, business development companies and affiliated investment vehicles, the decision supports a wider co-investment framework within existing regulatory conditions.

Our earlier coverage on the FCA’s dispute with Neil Woodford’s W4.0 detailed how the regulator alleged the platform was providing unauthorised investment advice and financial promotions, claims the company denies. We noted W4.0 said it engaged with the FCA for months and adjusted its service to stay outside the regulatory perimeter, while the case added to wider legal pressure linked to the 2019 fund collapse.

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