Loosening of Marketing Restrictions in the JOBS Act Helps Private Equity and Hedge FundAccording 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