Look-Through Rules

The regulations outlined in Section 3(c)(1) of The Private Investment Company Exclusion include provisions known as look-through rules. These rules govern the maximum number of investors that a venture fund can accept. According to these rules, when a company invests in a venture fund, it is typically considered as one investor. However, if the company owns more than 10% of the fund, the fund must count all shareholders in that company towards their investor limits.