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Alternative Market Briefing

JOBS Act would allow funds to market offerings to a much larger audience and to a greater degree than ever before

Wednesday, April 11, 2012

By Precy Dumlao, Opalesque Asia: The Jumpstart Our Business Startups (JOBS) Act , which was signed into law by President Barack Obama last week, could provide some welcome relief for the alternative investment industry, both in how funds are marketed and in a potential increase in the investor base, according to Phil Niles, Director of Product Development at fund administration firm Butterfield Fulcrum.

Niles says in a release received by Opalesque, that one of the areas that potentially would be impacted relates to the marketing of alternative investment vehicles.

"The JOBS Act, which is currently working its way through a second vote in the House of Representatives, is set to eliminate the ban on marketing private placements, which would include hedge funds and private equity funds. A signature from President Obama, officially signing it into law, could come as early as April 2012 and the President has already indicated he would sign such legislation if it came to his desk."

On April 8, Obama signed into law the JOBS Act which aims to ease the restriction on access to investment capital for "Emerging Growth Companies" (EGCs), which are defined as firms that have completed their initial public offering after December 8, 2011, and that has less than $1bn in total revenue.

The JOBS Act’s also aims to raise j......................

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