Loosening of Marketing Restrictions in the JOBS Act Helps Private Equity and Hedge Fund
According to study released by Preqin, hedge fund and private equity managers have yet to take advantage of the loosening of marketing restrictions in the JOBS Act signed by President of the United States Barack Obama in April two years ago.
The
survey of 85 hedge fund managers and 65 private equity managers reveals
only 5% of private equity managers and 4% of hedge fund managers have
registered to market under the Jumpstart Our Business Startups Act.
The primary barriers to marketing are additional cost and an overall hesitancy to be the first manager to market.
Forty-two
percent of hedge fund managers and 24% of private equity managers cited
additional cost, while 21% of hedge fund managers do not want to be the
first to market. Among private equity managers, 22% cited potential
conflicts with the European Union's Alternative Investment Fund Managers
Directive, 20% cited increased Securities and Exchange Commission
scrutiny and 20% cited a negative perception of marketing.
Source: Pensions & Investments
