I
118THCONGRESS
1
STSESSION H. R. 2579
To require the Securities and Exchange Commission to revise the definition
of a qualifying investment, for purposes of the exemption from registra-
tion for venture capital fund advisers under the Investment Advisers
Act of 1940, to include an equity security issued by a qualifying portfolio
company and to include an investment in another venture capital fund,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL13, 2023
Mr. B
ARRintroduced the following bill; which was referred to the Committee
on Financial Services
A BILL
To require the Securities and Exchange Commission to revise
the definition of a qualifying investment, for purposes
of the exemption from registration for venture capital
fund advisers under the Investment Advisers Act of
1940, to include an equity security issued by a qualifying
portfolio company and to include an investment in an-
other venture capital fund, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
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•HR 2579 IH
SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘Developing and Em-2
powering our Aspiring Leaders Act of 2023’’. 3
SEC. 2. DEFINITIONS. 4
Not later than the end of the 180-day period begin-5
ning on the date of the enactment of this Act, the Securi-6
ties and Exchange Commission shall— 7
(1) revise the definition of a qualifying invest-8
ment under paragraph (c) of section 275.203(l)–1 of 9
title 17, Code of Federal Regulations— 10
(A) to include an equity security issued by 11
a qualifying portfolio company, whether ac-12
quired directly from the company or in a sec-13
ondary acquisition; and 14
(B) to specify that an investment in an-15
other venture capital fund is a qualifying in-16
vestment under such definition; and 17
(2) revise paragraph (a) of such section to re-18
quire, as a condition of a private fund qualifying as 19
a venture capital fund under such paragraph, that 20
the qualifying investments of the private fund are ei-21
ther— 22
(A) predominantly qualifying investments 23
that were acquired directly from a qualifying 24
portfolio company; or 25
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(B) predominantly qualifying investments 1
in another venture capital fund or other venture 2
capital funds. 3
Æ
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