The JOBS Act Loosens Private Fund Marketing Restrictions
April 04, 2012
BY THE INVESTMENT MANAGEMENT PRACTICE
This week, President Obama is expected to sign into law the Jumpstart Our Business Startups Act (JOBS Act), which combines several bills that were introduced last year with the aim of reducing the costs of going public for private companies and facilitating increased capital formation. While the JOBS Act focuses primarily on easing restrictions for small companies seeking to raise capital and go public, it also modifies certain rules that affect private funds and their managers, primarily by loosening the marketing restrictions of Regulation D under the Securities Act of 1933 , which may likely have the effect of increasing the ability of hedge funds and other private funds to market their offerings.