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

Freediving Through F...

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

Litigating at Civili...

My contract was terminated and the contracting officer did not pay my invoices – what can I do...

Export Controls Comp...

What are the left and rights limits, penalties, and best practices for export controls under Interna...

2026 Consumer Protec...

State attorneys general continue to play a central and increasingly aggressive role in consumer prot...

Trade Agreements Act...

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

The Changing Landsca...

Over the past year, the Patent Trial and Appeal Board (PTAB) has undergone a dramatic policy shift r...

White Collar Sentenc...

This program examines mitigation strategies for white-collar defendants in the post-Booker sentencin...

Artificial Intellige...

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

Expert Testimony in ...

This program examines the strategic use of expert testimony in immigration court proceedings. Partic...

The AI Trap: How Leg...

Many law firms now rely on AI?driven research, drafting, and workflow tools without fully understand...