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

Artificial Intellige...

Join us for Part 2 of a program tailored for attorneys seeking a better understanding of the ongoing...

Litigation Strategie...

This program is geared towards lawyers, experts, commercial property owners, and others in the envir...

Navigating the Curre...

The course will explore new guidance concerning FCPA enforcement issued by the Trump Administration ...

Federal Contractor B...

As the largest purchaser of goods and services in the world, the United States Government requires f...

Trade Secret Litigat...

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

Trade Agreements Act...

This course analyzes federal contractor obligations under the Trade Agreements Act. Learn how to ens...

Cybersecurity Compli...

This course analyzes federal contractor cyber security obligations under the Federal Acquisition Reg...

Freediving Through F...

Most legal professionals are operating in survival mode whether they realize it or not. Not crisis-l...

Key Trends Defining ...

Class action litigation continues to evolve rapidly in response to an innovative plaintiffs’ b...

Recognizing and Comb...

This one-hour CLE program examines the impact of implicit and systemic bias within the legal profess...