It's All About JOBS

The hedge fund industry is alive and well despite some reports of its demise. And while performance year to date does not seem to be all that strong, investors regardless of the size of their wallets are still allocating to Wall Street’s forbidden fruit.

Performance or lack thereof may be what’s on the minds of many outside the industry, however what seems to be on the minds on those in the industry is the JOBS bill.

The Jobs bill or the Jumpstart Our Business Startups Act, was signed into law by the President on April 5, 2012, is intended to help small business in attracting capital to grow and expand its business and reduce some of the burdensome regulations placed on privately held companies by Sarbanes Oxley. There are specific provisions regarding crowd funding and the rules regarding solicitation and advertising for “specific kinds of private placements” of securities. Enter the hedge fund and private equity industry.

As you know our goal at IIR is to have our fingers on the pulse of the industry and well let’s just say the blood is pumping with material on how this law is going to affect the industry.

We thought it'd be valuable for you, our fearless readers, to provide you with a summary of what the jobs bill is all about and also provide you with some commentary on how it is expected to affect the way funds raise money. Now we are not lawyers so instead of going to law school and coming up with our own conclusions, we went to the web and sourced material from firms we know are active in the industry. To be clear we are not providing legal advice nor are we endorsing any of the firms whose links you will find below but rather providing you with an entry point to access the information. With apologies to any firms that we left off the links list– there was many – please click below to access the information:

• Alston & Bird LLP
• Bingham McCutchen LLP
• Cadwalader, Wickersham & Taft LLP
• Seward & Kissel LLP
• Tannenbaum Helpern Syracuse & Hirschtritt LLP
• Ropes and Gray LLP

As always, if you have any questions, comments or concerns please feel free to email any member of the IIR alternative investment team. Thanks again for reading what we have to say and enjoy.

Posted in: Hedge Funds, Jobs bill, Jumpstart Our Business Startups Act, Private Equity, Securities