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SEC Lifts Ban on Fund Marketing

Posted by: In: Newsletter 20 Jul 2013 Comments: 0

By Jim Hynes

Managing Director

The U.S. Securities and Exchange Commission (SEC) recently voted to adopt a previously proposed rule that lifts the marketing ban on many types of private investment funds, including real estate. The new rule was part of the Jumpstart Our Business Start-Ups Act, which went into law in April 2012.

The rule will substantially increase the scope of permitted activities during fundraising, allowing fund managers to engage in all forms of communication with prospective investors. It is widely believed that internet marketing will be used more in communicating information about fund offerings to new investors. All investors admitted to a fund must still qualify as “accredited” investors.

The new rule will likely benefit emerging firms and firms that are looking to expand their investor pool as these groups typically don’t have the same manpower or financial resources of the larger, established firms.

Rockspring Capital already has a robust online marketing program as we recently implemented this strategy to promote our new Texas real estate fund to international investors.  Now that we have a proven system in place, we will use it to reach new U.S investors quickly and conveniently.

For more information about our firm, contact me at jim.hynes@rockspringcap.com.

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