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

How to Respond to Sh...

Adverse and derogatory information often has devastating effects on a contractor's ability to win co...

The Perfectionism Pa...

Perfectionism is often rewarded in the legal profession. It drives attention to detail, thorough pre...

Trade Secret Litigat...

This course on trade secrets litigation provides real-world best practices through all key stages of...

AI Agents Unleashed:...

AI agents — autonomous systems capable of planning, deciding, and acting independently across ...

Not for the Faint of...

Section 337 provides powerful, efficient and rapid remedies for a wide range of unfair methods of co...

Open Source AI: The ...

Open-source AI models have gone from niche developer tools to enterprise essentials almost overnight...

Mastering the Inner ...

Every trial lawyer has experienced it: the inner critic before opening statements, the surge of ange...

When the Attorney Be...

This program addresses a gap no standard ethics CLE reaches: the psychology of what happens inside t...

Beyond the Bargainin...

Modern mediation increasingly brings together parties, counsel, and neutrals across a broad range of...

Discovery: Practical...

This program provides a practical roadmap to mastering every stage of the discovery process in civil...