Bill > S3914

This bill requires the Securities and Exchange Commission (SEC) to revise the definition of a "qualifying investment" for the purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940. The key provisions are: (1) including an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition, as a qualifying investment; and (2) specifying that an investment in another venture capital fund is also a qualifying investment. Additionally, the bill requires that the qualifying investments of a private fund, in order for it to qualify as a venture capital fund, must be predominantly qualifying investments that were acquired directly from a qualifying portfolio company or predominantly qualifying investments in another venture capital fund(s).