VII Peaks BDC II Hires New Dealer Manager
VII Peaks Co-Optivist Income BDC II, Inc., a non-traded business development company, entered into a dealer manager agreement with Arete Wealth Management LLC to act as dealer manager in the company’s continuous public offering of common stock.
Arete Wealth Management is a wealth management firm founded in 2007 with approximately $3 billion in assets under management, more than 40,000 clients, and 21 branch offices nationwide. Arete is a registered investment advisor and a broker-dealer.
The dealer manager services will be performed by Insight Wealth Group, a branch office of Arete.
Arete will earn a commission of 7 percent and a dealer manager fee of 3 percent of the gross proceeds from the sale of shares in the offering, less whatever amounts are re-allotted to selected dealers which sign selected dealer agreements with Arete.
As reported by The DI Wire, the BDC’s former dealer manager, Axiom Capital Management, terminated its agreement with the company last month. Although no reason was given for the termination, VII Peaks believed it was due to a post-effective amendment to their registration statement had not been declared effective by the Securities and Exchange Commission.
The terms of the new dealer manager agreement are substantially the same as the prior agreement with Axiom Capital Management.
VII Peaks Co-Optivist Income BDC II invests in discounted corporate debt and equity-linked debt and preferred equity securities of companies that have a perceived risk of near term liquidity issues but have solid business fundamentals and prospects, including historical revenue growth, positive cash flow, significant and sustainable market presence, and sufficient asset coverage. As of September 30, 2015, the company has invested approximately $41.5 million in 40 investment positions in 31 portfolio companies.
