Every major financial regulation eventually produces the market it was trying to prevent. The Investment Company Act of 1940 was sensible enough in its original intent. Its practical effect, forty years later, was a capital drought: private equity and venture capital firms were legally capped at 100 investors, choking off funding for the growing businesses that needed it most. Congress fixed the problem by creating another regulatory structure—the Small Business Investment Incentive Act of 1980, which established Business Development Companies. In this framework, publicly-traded funds that