Goldman registers Liberty Harbor as public company

Apr 01, 2013, 6:43 PM EDT

Goldman Sachs has registered a fund that invests in risky credit products as a publicly traded business development company, a way for the bank to avoid some of the new regulations that would otherwise limit its activity. The unit, Liberty Harbor Capital LLC, will invest in bonds and loans that are not rated by credit ratings agencies, but would be considered less than investment-grade. Business development companies are exempt from the Volcker rule that could restrict Goldman's ability to sponsor or invest in such funds. Liberty Harbor will also be designated as an emerging growth company, which will lift some reporting and regulatory requirements.