119-hr4429

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4429 Reported in House

    (RH) ]

<DOC>

 Union Calendar No. 203
119th CONGRESS
 1st Session
 H. R. 4429

 [Report No. 119-246]

 To require the Securities and Exchange Commission to revise the 
 definition of a qualifying investment, for purposes of the exemption 
 from registration for venture capital fund advisers under the 
 Investment Advisers Act of 1940, to include an equity security issued 
 by a qualifying portfolio company and to include an investment in 
 another venture capital fund, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 16, 2025

 Mrs. Wagner introduced the following bill; which was referred to the 
 Committee on Financial Services

 September 8, 2025

 Additional sponsor: Mr. Casten

 September 8, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
 in italic]
 [For text of introduced bill, see copy of bill as introduced on July 
 16, 2025]

_______________________________________________________________________

 A BILL

 To require the Securities and Exchange Commission to revise the 
 definition of a qualifying investment, for purposes of the exemption 
 from registration for venture capital fund advisers under the 
 Investment Advisers Act of 1940, to include an equity security issued 
 by a qualifying portfolio company and to include an investment in 
 another venture capital fund, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Developing and Empowering our 
Aspiring Leaders Act of 2025''.

SEC. 2. DEFINITIONS.

 Not later than the end of the 180-day period beginning on the date 
of the enactment of this Act, the Securities and Exchange Commission 
shall--

    (1) revise the definition of a qualifying investment under 
 paragraph
            (c) of 

section 275.203
            (l) -1 of title 17, Code of 
 Federal Regulations--
        (A) to include an equity security issued by a 
 qualifying portfolio company, whether acquired directly 
 from the company or in a secondary acquisition; and
        (B) to specify that an investment in another 
 venture capital fund is a qualifying investment under 
 such definition; and

    (2) revise paragraph

    (a) of such section to--
        (A) require, as a condition of a private fund 
 qualifying as a venture capital fund under such 
 paragraph, that not less than 51 percent of the fund's 
 aggregate capital contributions and uncalled committed 
 capital (other than short term holdings) shall consist 
 of equity securities acquired directly from a 
 qualifying portfolio company, including immediately 
 after the acquisition of any asset; and
        (B) specify that up to 49 percent of the fund's 
 aggregate capital contributions and uncalled committed 
 capital (other than short term holdings) may consist of 
 investments in one or more venture capital funds, as 
 well as securities acquired in a secondary acquisition.
 Union Calendar No. 203

119th CONGRESS

 1st Session

 H. R. 4429

 [Report No. 119-246]

_______________________________________________________________________

 A BILL

 To require the Securities and Exchange Commission to revise the 
 definition of a qualifying investment, for purposes of the exemption 
 from registration for venture capital fund advisers under the 
 Investment Advisers Act of 1940, to include an equity security issued 
 by a qualifying portfolio company and to include an investment in 
 another venture capital fund, and for other purposes.

_______________________________________________________________________

 September 8, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed