NVCA Challenges SEC’s New Private Fund Adviser Rule

There was no shortage of drama in the past year regarding the Security and Exchange Commission’s (SEC) proposed private fund reforms, which were eventually enacted on August 23, 2023 and were approved 3-2 along party lines by the commissioners. These sweeping reforms, taken a whole, are much less transformational than the original proposal from February 2022.

However, in a perhaps surprising move, the National Venture Capital Association, along with a “coalition of asset management associations,” last week challenged the SEC’s new private fund adviser rule in front of the U.S. Court of Appeals for the Fifth Circuit.