No. Rule 3c-5 under the Investment Company Act of 1940 provides that knowledgeable employees of a 3(c)(1) fund do not count toward the 100 beneficial owner limitation. The term “knowledgeable employee” includes executive officers of a fund as well as investment person. The term “executive officer” includes any executive officer, director, trustee, general partner, advisory board member, or person serving in a similar capacity. The term “investment person” refers to an employee of a 3(c)(1) fund or an affiliated management person who actively participates in the investment activities of the fund in connection with his or her regular duties.
Can a hedge fund advertise on the Internet?
Historically, hedge funds have been prohibited from conducting any public offering by Rule 502(c) of Regulation D, which prohibited all forms of general solicitation and advertising. However, the JOBS Act…
Does a hedge fund need to register with any regulator?
Hedge fund managers are often regulated by the state in which the hedge fund manager conducts business or by the SEC, depending on the manager’s assets under management (known as…
What documents do I need to start a hedge fund?
Most hedge funds raise money through a private offering exemption under Regulation D of the Securities Act of 1933. Although Reg. D prohibits general advertising, fund managers do distribute certain…