Senator Chris Dodd today unveiled the latest version of his financial regulatory reform bill which, if passed, would have some implications for the venture capital and private equity markets (despite some media suggestions that PE/VC escape scrutiny).
It’s a lot like the original bill from last fall, but with exactly 200 more pages (we’ll consider this the unabridged version). Here are the relevant highlights:
1. Dodd retains the original Senate bill’s registration exemption for venture capital and private equity funds. He also retains the original bill’s edict that the SEC is responsible for constructing a definition for “venture capital” funds and “private equity” funds — so as to differentiate them from “hedge funds” (which will be required to register).
As a reminder, an earlier House bill had only exempted venture capital funds of $150 million or less. Industry trade groups had insisted that any registration would be unwarrented, given that neither VC nor PE firms helped contribute to the financial meltdown. They’re right, but hedge fund reps could have made the same argument…
To read the full, original article click on this link: What Dodd Bill Would Mean for Venture Capital and Private Equity | Paperless Media
Author: Paperless Media
