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Venture Capital Investment Adviser

Lowenstein Sandler LLP

When Two Become One: Navigating the Complexities of Operational Integration

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On September 20, 2024, the U.S. Securities and Exchange Commission (SEC) announced a settlement with an investment adviser for, among other things, failure to register with the SEC as an investment adviser. The SEC found that...more

Proskauer - Private Market Talks Podcast

[Podcast] Private Market Talks: Pacing Growth and Maintaining Discipline with Wellington Management’s Shanna O’Reilly

Welcome to Season 4 of Private Market Talks! In our newest episode, we are joined by Shanna O’Reilly, co-head of Private Investments at Wellington Management, one of the world’s largest investment managers. Shanna helped...more

Mintz Edge

VC Funds Warehousing Investments: Traps for the Unwary

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One of the challenges facing venture capital firms is how to handle investments in portfolio companies prior to the initial close (“Initial Close”) of a new fund (“New Fund”). Typically, the investment advisor (“VC Advisor”),...more

SEC Compliance Consultants, Inc. (SEC³)

Regulatory Roundup for August 2024

More Flack on WhatsApp, Hypothetical Performance SmackDown, A Timely Warning on the Pay-to-Play Rule, and Updates to Qualifying Venture Capital Fund Exemption - This month's big news from the SEC was more piggy-bank breaking...more

DLA Piper

Private Fund Adviser Rules Vacated: Key Takeaways

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A three-judge panel of the US Court of Appeals for the Fifth Circuit unanimously vacated the US Securities and Exchange Commission (SEC)’s private fund adviser rules and amendments (Private Fund Rules), stating that “no part...more

DLA Piper

Treasury’s FinCEN and SEC Propose Rule Requiring Investment Advisers to Develop Customer Identification Programs

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On May 13, 2024, the Securities and Exchange Commission (SEC) and the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) jointly proposed a new rule that would impose requirements on SEC-registered...more

Allen Matkins

California Doubles Down On Problematic Venture Capital Reporting Law

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Given the importance of venture capital to California's economy, one might expect that state lawmakers would be keen to nurture the industry rather than enact laws that encourage venture capital companies to avoid the Golden...more

Akin Gump Strauss Hauer & Feld LLP

SEC and FinCEN Propose Customer Identification Program Requirements for Certain Investment Advisers

In February 2024, the U.S. Department of the Treasury issued its 2024 Investment Adviser Risk Assessment, which explains that there are “several illicit finance threats involving investment advisers,” including that...more

Allen Matkins

Governor Seeks $7.9 Million To Implement Venture Capital Company Reporting Law That He Branded As "Problematic"

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Article 14, Section 12 of the California Constitution requires the Governor to submit a budget to the Legislature by January 10 of each year.  The Constitution further required that the budget be accompanied by a budget bill,...more

Cooley LLP

Venture Capital Fund Managers’ Guide to Applying the Latest Marketing Rule Risk Alert

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One of the most important documents for fund managers is the marketing deck. Whether it’s to raise a new fund or a special purpose vehicle, or just to build relationships with prospective investors, every fund manager has...more

Stikeman Elliott LLP

Ten LPs + 85 Investors Over Four Years = Unlicensed Trading Allegation from the OSC

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One of the grey areas for real estate development, private equity and venture capital firms (“sponsors”) that serially launch new funds is how frequently a sponsor can come to market with a new fund offering without hitting...more

Cooley LLP

Securities Laws Fundamentals for Venture Capital Fund Managers

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If you’re starting out as a new firm and raising your first fund (or special purpose vehicle), there are a few securities laws principles that you’ll need to become familiar with. This post is intended to provide a quick...more

Seward & Kissel LLP

SEC Proposes Update to Definition of Qualifying Venture Capital Fund

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Who may be interested: Boards of Directors, Investment Advisers, Compliance Staff - Quick Take: The SEC proposed Rule 3c-7 under the 1940 Act, which would inflation adjust the dollar threshold for a fund to meet the...more

The Rodman Law Group, LLC

The Corporate Transparency Act Reporting Exemptions

The Corporate Transparency Act mandates certain reporting requirements for beneficial ownership information for certain companies, with the goal of preventing the illicit use of anonymous shell companies for financial crimes....more

DarrowEverett LLP

Venture Capital Firms Face New Reporting Requirement With California Law

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Over three and a half years since the death of George Floyd spurred some members of the venture capital community to enact promises to increase their investments in diverse entrepreneurs, California has enacted legislation in...more

Lowenstein Sandler LLP

Alternative Data is Now Mainstream; AI Could Be Next: The 2023 Lowenstein Sandler Alternative Data Report

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Alternative data continues to strongly influence the decision-making of investment professionals across all areas of the investment management industry. In a testament to the rising importance of alternative data, the...more

Woodruff Sawyer

Regulatory Creep and Venture Capital Risk Management (and Introducing the Financial Services Notebook)

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Since the 2008 financial crisis, the SEC has made repeated encroachments into the private funds industry. Registered investment advisers (RIAs) have borne the heaviest regulatory burden: routine examinations, frequent...more

BCLP

California Imposes Sweeping Demographic Reporting Rule on Private Fund Sponsors

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On October 8, 2023, California Governor Gavin Newsom signed into law Senate Bill 54, Fair Investment Practices by Investment Advisers (“SB54”). The law requires that “covered entities” collect and report sensitive demographic...more

Proskauer Rose LLP

Wealth Management Update - December 2023

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Shining a Light on the Corporate Transparency Act: FinCEN’s Rules for Beneficial Ownership Reporting - On January 1, 2021, Congress enacted the Corporate Transparency Act (the “CTA”) as part of the Anti-Money Laundering...more

Dechert LLP

Sweeping Law for DEI Transparency of Private Funds with a California Nexus

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California continues its initiatives to increase workplace diversity through a new law that will require certain funds with a nexus to California to report DEI information about the founding teams of their portfolio...more

Proskauer Rose LLP

Feeling Bullish: A Career in Private Credit

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Interest in private credit has grown significantly in the past 12 months. As the syndicated market has slowed, direct lenders (and borrowers) are finding better deal flow and increased opportunities. Market pundits have...more

Cooley LLP

Facing the SEC’s New Rules for Venture Capital and Other Private Fund Advisers

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Just over a month ago, the Securities and Exchange Commission (SEC) adopted new rules for venture capital (VC) and other private fund advisers under the Investment Advisers Act of 1940 (Advisers Act). These new rules, which...more

Goodwin

How Much Must Managers ‘Deploy’ From an Existing Fund Before Starting a Successor?

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Fund documents usually stipulate a percentage (70% to 75%, in most cases), but the terms used in provisions can have a significant effect on what the percentage means in practice. Most fund managers operate multiple...more

Harris Beach PLLC

New Rules for Private Fund Advisers

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The United States Securities and Exchange Commission recently adopted sweeping changes to the regulatory regime that governs private investment funds – hedge funds and private equity funds. The Aug. 23, 2023, changes are the...more

Allen Matkins

Nonsensical Bill Requiring Founding Team Diversity Reports Advances

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In April, I reported on SB 54 (Skinner), a bill that would have required institutional Investors, securities and real estate brokers, and others to report on the diversity status of "founding teams".  At the time, I...more

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