Section 3(c)(1) and Section 3(c)(7) of the Investment Company Act and the Use of Parallel Funds

10 Jun , 2025

To register for the upcoming live webinar, please Click Here

The Investment Company Act of 1940 potentially imposes significant regulatory burdens on investment funds. To avoid these constraints, most private equity, venture capital, and hedge funds rely on exemptions under either Section 3(c)(1) or Section 3(c)(7). However, a fund utilizing the Section 3(c)(1) exemption may eventually approach its investor limit (100 or 250, depending on the circumstances) while still seeking to accept new investors. Similarly, a Section 3(c)(7) fund may wish to admit investors who do not qualify as "qualified purchasers." 

This program will provide an in-depth exploration of the Section 3(c)(1) and 3(c)(7) exemptions, how to count investors under such exemptions, and discuss how fund sponsors can establish parallel funds to accommodate different investor bases while maintaining regulatory compliance. The discussion will also cover key structuring considerations, potential legal pitfalls, and best practices for fund managers.

This program is designed for fund formation attorneys, as well as in-house counsel at asset managers and investment firms.

 

To register for the upcoming live webinar, please Click Here

More Webcasts

Litigation Series: F...

This program provides a detailed examination of the Black Market Peso Exchange (BMPE), one of the mo...

Resilience in the Wo...

Resilience in the Workplace, delves into the critical importance of resilience in navigating the cha...

Ethics, Confidential...

Artificial intelligence is already reshaping legal practice, from research and drafting to litigatio...

Accounting Principle...

Attorneys will receive a comparative analysis of GAAP and IFRS with emphasis on cross-border legal c...

Litigation Series: W...

This program focuses on overcoming the inner critic—the perfectionist, self?doubting voice tha...

Depositions: Say tha...

In this seminar, we will talk about the process of taking a deposition, why you should (or should no...

Introduction to Gove...

Contracting with the Federal Government is not like a business deal between two companies or a contr...

The Loneliness Epide...

Loneliness isn’t just a personal issue; it’s a silent epidemic in the legal profession t...

Aligning Your Legal ...

Aligning Your Legal Career with Your Values, explores the profound impact of values alignment on ind...

Building the Data Pr...

Effective data privacy and artificial intelligence governance programs do not happen by accident. Th...