Articles in Private Equity

NEW SEC RULES ALLOW GENERAL SOLICITATION AND GENERAL ADVERTISING IN PRIVATE OFFERINGS UNDER RULE 506

The Securities and Exchange Commission on Wednesday, July 10, issued final rules lifting the longstanding prohibition of general solicitation and general advertising in private offerings of securities conducted in reliance on Rule 506 of Regulation D under the Securities Act of 1933. The new rules, … Read More »

“FAMILY OFFICES” EXCLUDED FROM FEDERAL INVESTMENT ADVISER REGISTRATION

Date: January 13th, 2012

The Investment Advisers Act of 1940 (the “Advisers Act”) generally requires “investment advisers” to register with the Securities and Exchange Commission (the “SEC”) and comply with a variety of ongoing disclosure and other regulatory requirements. An “investment adviser,” as broadly defined under the Advisers Act, … Read More »

GOOD NEWS FOR STARTUPS IN NEED OF FINANCING. “CROWDFUNDING” MAY BE ON THE WAY.

Date: November 17th, 2011

Earlier this month, the U.S. House of Representatives passed H.R. 2930, which is intended to clear the way for startups and other businesses to offer and sell securities in small offerings of up to $2 million, with individual investments limited to $10,000 or 10% of … Read More »

STIMULATING STARTUPS: THE TROUBLE WITH THE PRESIDENT’S PROPOSAL

Date: February 7th, 2011

Recently, I traveled to Washington D.C. to be with my brother-in-law, Sean Duffy, for his swearing-in as a freshman Representative for Wisconsin’s 7th Congressional District. On the flight to D.C., I sat next to my own Congressman, Rep. Jay Inslee, and we had a wide-ranging … Read More »

PREFERRED STOCKHOLDERS LOSE CLEVER REDEMPTION ARGUMENT

Date: February 3rd, 2011

As many company founders know, preferred stock financings with venture capital firms and other savvy investors frequently involve a redemption right. The redemption right gives an investor the right at some time in the future to compel the company to buy back the stock the … Read More »

AMENDMENT TO PRESERVE REGULATION D PASSES

The following press release is also available here. ANGEL INVESTOR AMENDMENT PASSES May 17, 2010 WASHINGTON, D.C. – A bipartisan group of Senators tonight scored a victory that will provide strong protections for investors while promoting small business startups vital to job creation. A bipartisan … Read More »

UPDATE: AMENDMENT PROPOSED TO PRESERVE REGULATION D

On May 13, 2010, an amendment was proposed to Senator Dodd’s financial regulation reform bill that would largely preserve the current state of Regulation D.  The amendment, SA 4037, calls for the following: – Maintain the current net worth criteria for Accredited Investors at $1 … Read More »

FINANCIAL REGULATION OVERHAUL THREATENS STARTUP COMPANY FINANCING

Date: April 30th, 2010

Regardless of your political persuasion, if you are an entrepreneur running a startup company you should be nervous about the financial regulation overhaul bill currently being debated in the U.S. Senate.  Known as the “Restoring American Financial Stability Act,” the pending bill threatens to do … Read More »

OBAMA ADMINISTRATION PROPOSES LEGISLATION ELIMINATING THE PRIVATE ADVISER EXEMPTION

Date: October 1st, 2009
Categories: Private Equity

On July 15, 2009, the Treasury Department proposed new legislation entitled the Private Fund Investment Advisers Registration Act of 2009 (the “Act”). If enacted, the Act will require many presently-exempted advisers to private investment funds (such as hedge funds, private equity funds, and venture capital … Read More »