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: L...

This program examines listening as an active, strategic trial advocacy skill rather than a passive c...

Complying with the M...

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

Complying with the M...

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

A Lawyer’s Guide T...

‘A Lawyer’s Guide To Mental Fitness’ is a seminar designed to equip professionals ...

Litigation Series: E...

Evidence Demystified Part 2 covers key concepts in the law of evidence, focusing on witnesses, credi...

Domestic Violence as...

This program reframes domestic violence through the lens of “intimate terrorism,” equipp...

Litigation Series: E...

Evidence Demystified Part 1 introduces core evidentiary principles, including relevance, admissibili...

Litigation Series: F...

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

Litigation Series: E...

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

Leaving Government E...

The program will cover the key issues for lawyer leaving government employment including the nuances...