The “Economic Growth, Regulatory Relief and Consumer Protection Act,” signed by the President on May 24, amends Section 3(c)(1) of the Investment Company Act of 1940 to provide that a “qualifying venture capital fund’ may have as many as 250 beneficial holders of its securities – an increase from 100 beneficial holders. A “qualifying venture capital fund” is defined to mean “a venture capital fund that has not more than $10,000,000 in aggregate capital contributions and uncalled committed capital, with such dollar amount to be indexed for inflation once every 5 years by the [Securities and Exchange] Commission, beginning from a measurement made by the Commission on a date selected by the Commission, rounded to the nearest $1,000,000.” The definition of “venture capital fund” set forth in Rule 203(l)-1 under the Investment Advisers Act of 1940 has not been amended. Click here to view the…
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