Advisory Firm and Principal Owners
BCA, a Delaware limited liability company, was founded in March 2010 and became registered with the
United States Securities and Exchange Commission in August 2013. BCA is a wholly owned subsidiary
of Brightwood Capital Advisors, LP, which is 100% owned by Sengal Selassie. Brightwood Capital
Advisors GP, LLC is the general partner of Brightwood Capital Advisors, LP. Mr. Selassie is the
managing member of Brightwood Capital Advisors GP, LLC and owns 100% of the interests in such
entity.
SPV Advisors, a Delaware limited liability company, was founded in July 2018 and became a relying
adviser of BCA in January 2020. SPV Advisors is a wholly owned subsidiary of BCA.
Advisory Services
Brightwood provides portfolio management and investment advisory services to pooled investment
vehicles that invest primarily in secured loans of middle market companies organized and located in the
United States. Such pooled investment vehicles are sold on a private placement basis to institutional and
high net worth investors. Brightwood’s advisory services generally include, without limitation, identifying
prospective investments, analyzing investment opportunities, conducting research and performing due
diligence on potential investments, negotiating and structuring investments, and monitoring investments
and portfolio companies on an ongoing basis.
The pooled investment vehicles to which Brightwood provides investment advisory services are primarily
private investment funds that are exempt from registration under the Investment Company Act of 1940, as
amended (the “1940 Act”), and whose securities are exempt from registration under the Securities Act of
1933, as amended (the “Private Funds”). Certain of the Private Funds are licensed as small business
investment companies by the U.S. Small Business Administration (such Private Funds, the “SBIC Funds”)
and certain other Private Funds are collateralized loan obligation vehicles (such Private Funds, the “CLO
Funds”). In addition to the Private Funds, Brightwood serves as sub-adviser to a Luxembourg reserved
alternative investment fund (the “Sub-Advised Fund”) that was organized by an unaffiliated third party
alternative investment fund manager (the “AIFM”). Lastly, Brightwood provides advisory services to a
pooled investment vehicle that has elected to be regulated as a business development company under the
1940 Act (the “BDC” and collectively with the Private Funds and the Sub-Advised Fund, the “Funds”).
Brightwood
does not serve as general partner (or in a similar capacity) to any of the Private Funds. Instead,
certain of Brightwood’s affiliates, including Brightwood Capital SBIC Managers, LLC, Brightwood
Capital SBIC Managers II, LLC, Brightwood Capital SBIC Managers III, LLC, Brightwood Capital Fund
Managers III, LLC, Brightwood Capital Fund Managers IV, LLC and Brightwood Capital Fund Managers
V, LLC, serve as general partners (collectively, the “General Partners”) to one or more of the Private
Funds. Neither Brightwood nor any of its affiliates serve as trustee to the CLO Funds or as general partner
(or in a similar capacity) to the Sub-Advised Fund. Pursuant to an investment management agreement,
collateral management agreement or other similar governing agreement, each Private Fund’s respective
General Partner or trustee has engaged BCA or SPV Advisors to provide investment advisory services or
collateral management services to each respective Private Fund on a discretionary basis. In the case of the
Sub-Advised Fund, the AIFM has engaged BCA to provide investment advisory services on a non-
discretionary basis. In the case of the BDC, the BDC’s Board of Directors has engaged BCA to provide
investment advisory services on a discretionary basis.
Availability of Customized Services for Individual Clients
Brightwood provides investment advisory services on a discretionary and non-discretionary basis in
accordance with the investment objectives, guidelines, and restrictions set forth in each Fund’s confidential
private placement memorandum or other governing documents (collectively, the “Governing
Documents”). The Funds may negotiate through their Governing Documents for investment exposure (or
investment limitations) with respect to specific industries, sectors, geographic regions, or investments.
Brightwood does not tailor its advisory services to the individual needs of the investors in the Funds (the
“Investors”). However, Brightwood has the right to enter and has entered into agreements, such as side
letters, with certain Investors that may in each case provide for investment terms that are more favorable
than the terms provided to other Investors.
Wrap Fee Programs
Brightwood does not participate in any wrap fee programs.
Regulatory Assets Under Management
As of December 31, 2022, Brightwood’s regulatory assets under management were $5,697,541,772, of
which $5,566,978,324 were managed on a discretionary basis and $130,563,448 were managed on a non-
discretionary basis.