The joint conference committee on financial reform has met and the verdict appears to be in. Private equity funds with more than $150 million in assets under management will have to register with the Securities and Exchange Commission, joining their hedge fund brethren. Venture capital funds of all sizes, meanwhile, will escape registration, although they will be subject to some reporting requirements.
As work on reconciling two different versions of financial reform passed by the two houses of Congress proceeded Tuesday, Senator Christopher Dodd (D-Conn.) said that the Senate would accept the House of Representatives’ provision that would require private equity firms with $150 million or more in assets under with the SEC. He added that the Senate would also accept an exemption for family offices and venture capital firms, as everyone agrees that the business model for venture capital differs from that of private equity firms.
To read the full, original article click on this link: The Great Escape: SEC Registration To Exclude Venture Capital - Venture Capital Dispatch - WSJ
Author: Laura Kreutzer
