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

Aligning Your Legal ...

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

Litigation Series: M...

This companion program to Part 1 goes deeper into the rhetorical power of Shakespeare, emphasizing h...

Ethics, Confidential...

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

Who is Your Lawyer o...

Recent court opinions, a lawsuit against OpenAI Foundation and OpenAI Group PBC aka ChatGPT for the ...

Building Inclusive L...

This interactive course is designed to equip legal professionals with the knowledge, tools, and stra...

The Rise of the "Fra...

The filing of multiple RICO complaints in federal courts in New York State against plaintiffs’...

Law in the Age of La...

Large World Models (LWMs)— the next generation of AI systems   capable of generating...

Litigation Series: E...

Part 1 - This program focuses specifically on cross?examining expert witnesses, whose credentials an...

Labor Law Compliance...

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

Complying with the M...

This course will provide a detailed overview of the Medicare Secondary Payer act as well as provide ...