SEC Proposes Inflation Adjustment Related to Definition of “Qualifying Venture Capital Fund”

The SEC has released a proposed rule under which the dollar threshold used to define a “qualifying venture capital fund” (such a fund does not qualify as an “investment company” under the Investment Company Act of 1940) would be adjusted for inflation — from $10 million to $12 million of “aggregate capital contributions and uncalled committed capital.” The purpose of the proposal is to implement a mandate of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, which requires the SEC to index this dollar threshold for inflation every five years.

For more information, see the press release on the SEC’s Web site.