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To: Grommit who wrote (36019)	11/24/2009 6:35:06 PM
From: Spekulatius	Respond to of 78663

Grommit, look again. there is a 4.75% sales load - this is due to the offering expense. 4.75% is a normal fee for a secondary of this scope. The 4.6% that I am referring to is an annual expense. one thing is sure, management has taken care of themselves and they have a great incentive to increase the assets under management. Now how you can make money when you need to borrow money from banks and slap a 4.6% fee on top of that (plus the 4.75% sales load from the secondary) I do not know and have no desire to find out. All BDC's seem to be sucker bets, imo.

To: Grommit who wrote (36019)	11/24/2009 6:54:30 PM
From: MCsweet	Read Replies (1) \| Respond to of 78663

You should know that basically all these BDCs (PSEC, HTGC, PNNT, ARCC, AINV, BKCC, TCAP, MVC, TICC, ACAS, ALD, GLAD, KED) are set up to have high fees, so if you are going to sell on the basis of fees, you should probably consider selling any BDC holding you might have. This is not unreasonable, but I wouldn't single out FSC. BDCs are all essentially run with hedge-fund like incentive structures, or perhaps more accurately private-equity like incentive structures. With BDCs, you are getting investments in private equity. I would completely agree the fees are too high, but I would also point out that a company like FSC is originating loans to private companies, which requires more due diligence work and infrastructure then a mutual fund manager buying Intel or IBM, so you are going to have live with higher fees. MC