A Schorsch Entity Agrees to Acquire a BDC Advisor

Schorsch and company never seem to hit pause. With two non-traded REITs listing this month and several broker dealer acquisitions still pending, in addition to ongoing management of about 10 other investment offerings, when do they find time to source new acquisitions? Somehow, they have and it resulted in an agreement to acquire a manager of a business development company (BDC).

BDCA Adviser, LLC, a subsidiary of AR Capital and advisor to Business Development Company of America, a non-traded BDC, has agreed to acquire 100% equity interests in Keating Investments, LLC.

Keating Investments is advisor to Keating Capital (NASDAQ: KIPO), a BDC that specializes in making pre-IPO investments in emerging growth companies. The Company’s name will change to BDCA Venture Adviser once the transaction has closed.

Keating Investments Investment Committee will keep its current members and continue to manage Keating Capital. The current committee members will remain the same but will be expanded to include two officers of BDCA Adviser.

“We look forward to welcoming Tim Keating and his team onto the broader BDCA Adviser/AR Capital platform.” commented Peter M. Budko, Chief Executive Officer of BDCA Adviser. He continued, “This alliance allows us to expand the capabilities of BDCA Adviser into the highly attractive venture equity arena. We believe that the clients of our two firms have the potential to realize significant benefits from this transaction.”

Business Development Company of America invests in the debt and equity of private middle market companies.

As of December 31, 2013, BDCA Adviser managed approximately $992 million in assets (at fair value and including assets purchased through a total return swap).