Will Hedge Funds See Accredited Investor Bump? Don't Bet On It

In an article published in Fund Fire discussing the change to the accredited investor rule, Richard Shamos (Counsel) was quoted.

“Hedge funds can have up to 35 sophisticated non-accredited investors today under rule 506 offerings," says Richard Shamos, counsel in Sadis & Goldberg’s financial services group.

While it’s doubtful the rule change will have a big impact on the hedge fund industry in terms of raising large amounts of capital, it could have more impact on the private equity and venture capital space.

"The larger potential changes for the alts industry could come further down the road," he adds.

"I think the change is significant. It’s an important regulatory definition," Shamos says. "The immediate impact isn’t going to be huge, but the potential is there if we see the SEC continue to liberalize access to private investment products.”