• The Impact of the JOBS Act on Private Funds and their Managers
  • May 4, 2012 | Authors: Drew G.L. Chapman; Brian Kleinhaus; Alan M. Parness
  • Law Firm: Cadwalader, Wickersham & Taft LLP - New York Office
  • President Obama signed the Jumpstart Our Business Startups Act, HR 3606 (the "JOBS Act") on Thursday, April 5, 2012, which contains significant amendments to the private capital raising provisions in the Securities Act of 1933, as amended (the "Securities Act"), the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Sarbanes-Oxley Act of 2002, as amended. The amendments most relevant to private investment funds and their investment advisers are contained in Title II, which lifts the ban on general solicitation and general advertising under Regulation D under the Securities Act ("Regulation D") in connection with private offerings, and Title V, which increases the holder-of-record threshold that triggers reporting company registration requirements under the Exchange Act.