Definition
A business development company (BDC) is a closed-end fund regulated under the U.S. Investment Company Act that can invest in private companies and list shares for public trading — used by robinhood-ventures-fund-ii to give retail investors fund-level private-market exposure.
Key Points
- Issues fixed number of exchange-traded shares (not open-end redemptions)
- RVII: 2% management fee + 20% incentive fee on realized gains (2026-08-05-robinhood-ventures-fund-ii-official)
- Investors own fund shares, not underlying startup equity directly