A new fund has been registered by Goldman Sachs Group Inc that invests in risky credit products such as a publicly traded business development company. This is one way that the Group would be avoid regulations that can limit its business activities.
The fund is named Liberty Harbor Capital LLC and the fund would be investing in middle market firms with weak credit ratings underserviced by banks. This was the purpose given for the creation of the fund with the US Securities and Exchange Commission.
The firm would also invest in bonds and loans that are not rated by credit ratings agencies or those considered below investment grade status.
The firm's creation was first reported by Reuters last January. Under the JOBS Act, Liberty Harbor would qualify as an "emerging growth company". This would allow the firm to take advantage of lower reporting requirements and other fiscal burdens other responsibilities required from a publicly traded firm.
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