The SEC recently decided to broaden their definition of who is considered an “Accredited Investor,” or someone who is allowed to buy or invest in unregistered or private funds. Prior to the new ruling, individuals either had to have a net worth of $1 million or have an annual income over $200,000 (Individual). The new law expands access to those who have entry level stock broker licenses or are “knowledgeable employees” of non-public firms. This proposal follows the Labor Departments decision in June to pass a ruling that diversified employee 401k plans and could allow them to invest in private markets. Paul Kiernan writes, “The trend reflects years of intensive lobbying by private market players whose influence in Washington has risen in tandem with their assets under management. The SEC estimates that $2.7tn was raised on private markets last year, compared with $1.2tn on public markets.” This should mean additional capital will be available to private equity, venture capital, and angel funds, which could lead to an increase in the number of deals we see in the coming year.
Read the Full Article Here: https://www.penews.com/articles
