Philadelphia partner Josh Deringer authored an article for The Investment Lawyer titled, “General Solicitation by Private Funds on the Horizon.”
Josh notes that of the six provisions that make up the Jumpstart Our Business Startups Act (JOBS Act), the most important for private funds is that which will modify current securities laws to remove the prohibition on general solicitation and advertisement for certain offerings.
The JOBS Act requires the SEC to revise Regulation D under the Securities Act to provide that the prohibition against general solicitation or general advertising contained in of Regulation D does not apply to offers and sales of securities made pursuant to , provided that all purchasers of the securities are accredited investors.
Josh’s article explains why this change will “alter fundamentally the way private funds are offered and sold.”