[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