The SEC has proposed a rule to update the dollar threshold for a fund to qualify as a “qualifying venture capital fund” for purposes of section 3(c)(1) of the Investment Company Act of 1940. Qualifying venture capital funds are not included in the Act’s definition of an “investment company.” The rule is intended to update the dollar threshold from the current standard of $10 million to $12 million aggregate capital contributions and uncalled committed capital. Under the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, the SEC is required to index the dollar figure for this threshold to inflation once every five years.
Should the proposed rule be adopted, it would:
The proposal will be published on the SEC’s website and in the Federal Register. The comment period will be open for 30 days following the proposed rule’s publication in the Federal Register.
Source:
SEC Proposes Rule to Update Definition of Qualifying Venture Capital Funds (sec.gov)
