Business development companies (BDCs) are investment companies registered under the Investment Company Act of 1940 that invest primarily in the debt and equity securities of private U.S. operating companies.  On October 28, a panel of attorneys discussed nascent consolidation in the BDC industry and summarized the legal and practical considerations in a BDC consolidation.  The program, “Riding the BDC Consolidation Wave,” featured Dechert partners William J. Bielefeld, Thomas J. Friedmann, David J. Harris, William J. Tuttle, Jeffrey S. Sion and Kenneth E. Young.  Although the program focused on consolidation of BDCs, many of the legal requirements for a BDC consolidation may also apply to hedge fund managers that wish to consider BDCs as permanent capital vehicles or as a way to diversify revenue streams.  This article summarizes the key takeaways from the program.  For more from Dechert on BDCs, see “Dechert Global Alternative Funds Symposium Evaluates Liquid Alternative Funds and Fund Governance Trends,” Hedge Fund Law Report, Vol. 8, No. 25 (Jun. 25, 2015).