Dodd Bill Exempts "Private Equity" Without Defining It
Not too long ago, Congressfolk were talking about how private equity and venture capital funds would be required to register themselves, as part of proposed financial reform legislation. Then came the House bill, which exempted all VC funds and any PE fund with under $150 million in capital under management. Yesterday, Chris Dodd introduced a Senate version that keeps the VC exemption, but also adds a PE exemption (leaving hedge funds in the registration mix). You can find it on page 301 of this massive document. The big catch in all of this, however, is that both the House and Senate bills leave the definitions of “venture capital” and “private equity” up to the SEC. The SEC also would be allowed to set certain reporting requirements for PE firms, although no clarity on what that may entail.
