By passing H.R. 1105, Congress will include middle-market private equity advisers in the same manner as venture capital funds. The two are structured and operate in a way that is almost identical.
Chicago, IL (PRWEB) June 20, 2013
The Association for Corporate Growth (ACG) issued the following statement after today’s House Financial Services Committee markup of H.R. 1105, the Small Business Capital Access and Job Preservation Act of 2013:
ACG applauds the House Financial Services Committee for moving one step closer to the enactment of legislation that would allow middle-market investors access to capital and exempt investment advisers from having to register with the Securities and Exchange Commission (SEC). Currently under the Dodd-Frank Act, private equity fund managers are subject to time-intensive and capital-constraining registration requirements.
Passage of H.R 1105 would exempt middle-market private equity fund managers who manage PE funds that have been shown to not add to the systemic risk of the global financial system. In fact, ACG members believe that important capital is being pulled away from job creating and economic growth activities to meet these current burdensome requirements.
“We need to revere the original spirit and application of the Dodd Frank Act, which was to uphold and safeguard our financial system, without constraining capital,” said Gary A. LaBranche, CEO and president of ACG. “By passing H.R. 1105, Congress will include middle-market private equity advisers in the same manner as venture capital funds. The two are structured and operate in a way that is almost identical, but venture capital managers are exempted from having to register under the Investment Advisers Act. Private-equity funds deserve the same treatment as venture capital funds.”
For more information about ACG, please visit http://www.acg.org.