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new private fund advisor There are three main requirements for exemption. (1) Neither the Adviser nor its Advisory Affiliates will be disqualified under Rule 506(d)(1) of SEC Regulation D. (2) The advisor must file with the State each report that an exempt reporting advisor is required to file with her SEC pursuant to SEC Rule 204-4. (3) The advisor must pay an initial reporting fee of $150 and an annual renewal reporting fee of $150 to the state. moreover, private fund advisor A person advising at least one private fund that is not a venture capital fund shall: (1) Advise only private funds in which eligible clients beneficially own outstanding securities;1(2) Each beneficiary shall receive a written disclosure that includes: (i) All Services provided to Beneficiaries. (ii) all obligations owed by the Adviser to Unitholders; and (iii) other important information affecting the rights and responsibilities of beneficiaries. (3) Each Adviser shall obtain an annual audited financial statement of each Private Fund and deliver such audited financial statement to each Unitholder of the Fund.
In light of the revised regulations, persons who advise private funds must take certain steps to maintain their exemption from registration as investment advisers under the Tennessee Securities Act, taking into account the exemptions provided under the revised regulations. It is important to consider whether
1 The term “eligible client” is defined in SEC Investment Adviser Rule 205-3 and includes a natural person who meets certain minimum thresholds of assets under management of the Adviser or a minimum net worth (excluding the value of a personal residence). Masu. Threshold that is adjusted periodically based on inflation. Pursuant to the SEC Order issued June 17, 2021, the current assets under management threshold is $1.1 million and the current net assets threshold is $2.2 million.
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