Developing and Empowering our Aspiring Leaders Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 2579 To require the Securities and Exchange Commission to revise the definition of a qualifying investment, for purposes of the exemption from registra- tion for venture capital fund advisers under the Investment Advisers Act of 1940, to include an equity security issued by a qualifying portfolio company and to include an investment in another venture capital fund, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 13, 2023 Mr. BARR introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Securities and Exchange Commission to revise the definition of a qualifying investment, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940, to include an equity security issued by a qualifying portfolio company and to include an investment in an- other venture capital fund, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:40 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2579.IH H2579 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2579 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Developing and Em- 2 powering our Aspiring Leaders Act of 2023’’. 3 SEC. 2. DEFINITIONS. 4 Not later than the end of the 180-day period begin- 5 ning on the date of the enactment of this Act, the Securi- 6 ties and Exchange Commission shall— 7 (1) revise the definition of a qualifying invest- 8 ment under paragraph (c) of section 275.203(l)–1 of 9 title 17, Code of Federal Regulations— 10 (A) to include an equity security issued by 11 a qualifying portfolio company, whether ac- 12 quired directly from the company or in a sec- 13 ondary acquisition; and 14 (B) to specify that an investment in an- 15 other venture capital fund is a qualifying in- 16 vestment under such definition; and 17 (2) revise paragraph (a) of such section to re- 18 quire, as a condition of a private fund qualifying as 19 a venture capital fund under such paragraph, that 20 the qualifying investments of the private fund are ei- 21 ther— 22 (A) predominantly qualifying investments 23 that were acquired directly from a qualifying 24 portfolio company; or 25 VerDate Sep 11 2014 23:40 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2579.IH H2579 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2579 IH (B) predominantly qualifying investments 1 in another venture capital fund or other venture 2 capital funds. 3 Æ VerDate Sep 11 2014 23:40 Apr 14, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2579.IH H2579 kjohnson on DSK79L0C42PROD with BILLS