A recent change to Section 3(c)(1) of the Investment Company Act may make it easier for small venture capital funds and certain special purpose vehicles to raise capital.  While Section 3(c)(1) previously enabled such funds with up to 100 beneficial owners to be exempt from registering as investment companies with the Securities and Exchange Commission, the revised law increases this threshold to 250 beneficial owners.

Teammates from Mintz Levin’s Corporate & Securities Practice recently explained the change to Section 3(c)(1) and the potential benefits for qualifying venture capital funds in an alert. To read the full alert, click here.