By: Daniel A. Perry A 3(c)(7) fund applies to a private equity fund in relation to Section (3)(c)(7) of the Investment Company Act of 1940. This specific regulatory act was enacted because of The Stock Market Crash of 1929 and the ensuing Great Depression. It provided numerous safeguards to the investing public. This specific section of […]
By: Daniel A. Perry A Registered Investment Adviser (RIA) is a person or firm which advises individuals and families regarding their investments and manages their portfolios. Depending upon the size of the assets and/or the size of the firm, an RIA will be required to register with the state securities division and/or the Securities and Exchange […]
By: Daniel A. Perry A private equity fund is an investment entity formed by individuals who are interested in raising capital to make investments based on specific investment strategy. This may include individuals wanting to acquire ownership in specific companies as their investment strategy. The fund is owned by accredited investors. An accredited investor is defined […]
By: Daniel A. PerryGenerally, a mid-sized adviser is defined as an investment adviser that has between $25 million and $100 million in assets under management. In addition, mid-sized advisers, like investment advisers and investment adviser representatives, must register with their state securities division in which they conduct business. However, there are circumstances in which a […]
By: Daniel A. Perry “Lawyers are seldom loved but often needed.” This famous quote is as true today as the day it was uttered. I often receive calls from clients about their businesses being sued. Usually, it is regarding a contract dispute. Or a state regulatory agency has fined them for not being registered, not following […]
By: Daniel A. Perry A corporation is a separate business entity that conducts its own business, files its own taxes, and signs its own contract in its own name. Let’s look as John Doe as an example. If John owns John’s Plumbing Company Inc., his company should file taxes as John’s Plumbing Company Inc. rather than […]
By: Daniel A. PerryWhen it comes to operating your business correctly, there are several legal items that require every business owner’s attention. No matter how many times I explain the importance of formation and governance of a business’s legal entity, I have discovered that a story works much better to explain the legal importance of […]
By: Daniel A. PerryA private equity fund known as a 3(c)(1) Fund refers to the Investment Company Act of 1940, specifically Section 3(c)(1). This section is regarding the allowance of private funds avoiding requirements for the Securities and Exchange Commission (“SEC”). Section 3(c)(1) of the Investment Company Act provides:(c) none of the following persons is […]
By: Daniel A. PerryWhat are the registration requirements for private funds? Before we answer this question, we must determine whether a private fund is required to register with the Securities and Exchange Commission (“SEC”). General compliance with the securities laws involves a thorough understanding of the Securities Act of 1933. As a general rule, a […]
By: Daniel A. Perry In recent years, the sale of products online by independent sellers have reached all-time highs because of websites such as Shopify, Amazon, and Alibaba. Big name-brands have also jumped into the online sales business with large capital investments into the sale of products online. Recently, Tesla announced that they would be shutting […]