What is 12d1 4?
Rule 12d1-4 requires an acquiring fund and its advisory group to use mirror voting if the acquiring fund and its advisory group (in the aggregate) hold more than: 25% of the outstanding voting securities of an acquired open-end fund or UIT due to a decrease in the outstanding securities of the acquired fund, or.
What is 12d1?
Section 12D-1, under the Investment Company Act of 1940, restricts investment companies from investing in one another. The rule was enacted to prevent fund of funds arrangements from one fund acquiring control of another fund to benefit its investors at the expense of the shareholders of the acquired fund.
What is a portfolio affiliate?
(3) Portfolio affiliate of a fund means a person that is an affiliated person (or an affiliated person of an affiliated person) of a fund solely because the fund, a fund under common control with the fund, or both: (i) Controls such person (or an affiliated person of such person); or.
Can a registered investment company invest in a private fund?
I. Section 12(d)(1) of the 1940 Act limits a registered fund’s investments in other investment companies and a private fund’s investments in registered funds.
Do fund of funds need to register with the SEC?
Key Takeaways. Hedge funds are typically required to register with the SEC if they maintain investor assets of more than $100 million. If the entirety of assets managed are from private accredited investors then that limit is raised to $150 million1.
What is a 12d3 security?
Rule 12d3-1 permits a fund to invest up to five percent of its assets in securities of an issuer deriving more than fifteen percent of its gross revenues from securities-related businesses,48 but a fund could not rely on rule 12d3-1 to acquire securities of its own investment adviser or any affiliated person of its own …
What is an affiliated fund?
Affiliated Fund means, with respect to any specified Person, a private equity investment fund that is an Affiliate of such Person or that is advised by the same investment adviser as such Person or by an Affiliate of such investment adviser.
Are portfolio companies affiliates?
While this is a fact-specific analysis, for the purposes of the PPP, a private equity firm was likely to be considered an “affiliate” of a portfolio company, and portfolio companies controlled by the same private equity firm were likely to be “affiliates” of each other.
How do I find my private fund identification number?
[2] A private fund identification number is a unique identification number for each fund. Advisers must obtain an identification number for each private fund by logging onto the Investment Adviser Registration Depository (IARD) Web site and using the private fund identification number generator.