The IPA Establishes First Performance Guideline for Non-Listed BDCs

ELLICOTT CITY, Md., June 16, 2015 (GLOBE NEWSWIRE) -- As it celebrates its 30th anniversary of national leadership for the direct investments industry, the Investment Program Association ("IPA") announced today that its Board of Directors has approved a standardized Guideline for publishing non-listed BDC performance. The Guideline was developed by the IPA's BDC Committee, in close collaboration with the Legal & Regulatory, Compliance and Due Diligence Committees of the IPA, and also incorporates comments and input from the Financial Industry Regulatory Authority (FINRA).

The Non-Listed BDC Performance Guideline provides recommendations in the following areas related to performance figures of non-listed BDC securities:

  1. Basis of performance figures
  2. Reporting of performance figures
  3. Shareholder returns (without sales charge) definition, example of methodology and recommended disclosure
  4. Shareholder returns (with sales charge) definition, example of methodology and recommended disclosure
  5. Net Asset Value ("NAV") returns definition, example methodology and recommended disclosure

"Over nearly five years, the IPA has endeavored to standardize several of the key performance metrics in the direct investments industry, which we think is the right path toward continued growth," commented Kevin Hogan, CEO and President of the IPA. "Based on the overwhelming adoption by our members of similar IPA Guidelines, the Board expects that BDC investment sponsors will adopt this Performance Guideline in their future reporting."

The IPA's establishment of the Non-listed BDC Performance Guideline follows the successful development and implementation of the MFFO Performance Measure in 2010, and the Non-listed REIT Valuation Guideline in 2013. Non-listed REIT Performance Metrics are currently under development, and expected to be finalized later in 2015.

"It is important that our industry continues to enhance the clarity of product performance across asset classes," commented Tom Sittema, CEO of CNL Financial Group, and Chairman Elect of the IPA. "Non-listed BDCs are increasingly an important income vehicle for a range of investors. To standardize the way that investment sponsors report product performance provides advisors a powerful communication tool, as they work with their clients to plan their future."

About The Investment Program Association

The Investment Program Association (IPA) was formed in 1985 to provide effective national leadership for the direct investment industry. The IPA supports individual investor access to a variety of asset classes not correlated to the traded markets and historically available only to institutional investors. These include public non-listed REITs (NL REITs), business development companies (BDCs), energy and equipment leasing programs, and private equity offerings. For 30 years the IPA has successfully championed the growth and improvement of such products, which have increased in popularity with financial professionals and investors alike. The mission of the IPA is advocating direct investments through education. Access the wealth of IPA educational materials here, or visit the IPA online for more information about becoming a member.

To stay up-to-date with IPA news, follow @IPADirectInvest on Twitter.

CONTACT: MEDIA CONTACT: John McInerney Makovsky 212.508.9628

Source:Investment Program Association