By way of background, in the U.S. most private funds are offered to investors in reliance on an exemption from registration with the SEC that prohibits “general solicitations or general advertising.” The JOBS Act instructed the SEC to adopt rules eliminating the prohibition by the beginning of July. The SEC missed that deadline. More recently, the SEC scheduled a meeting for August 22 to consider the rules, but at the last minute the discussion was postponed until next Wednesday, August 29. In a subtle, but potentially impactful change to the meeting agenda, next week’s meeting will consider “whether to propose” (emphasis supplied) rules to eliminate the prohibition, as opposed to actually considering the rules themselves.
For the time being, the prohibition on general solicitations and general advertising remains.
However, according to a recent Citibank study, U.S. investors are the most active day one/early stage allocators and their allocation are over 50% larger than those from other regions. When entering into the U.S. market, non-U.S. advisers may have an advantage over U.S. emerging managers since many already have established track records.
Instead of waiting for the SEC to jumpstart U.S. businesses, why not jumpstart your own? U.S. advisers have successfully navigated the U.S. environment for years; you can too.