In The News

In the Financial Times, Asset Management Partner Melissa Bender Discusses Regulatory Considerations for New Angel Investors

Practices: Asset Management, Investment Advisers, Private Funds, Regulatory Compliance for Private Funds, Family Offices

A Feb. 23 article published by the Financial Times titled “US tech tycoons direct personal wealth to new frontiers” examines how start-up founders in the tech sector, who have seen rapid increases in personal wealth, are increasingly becoming angel investors themselves. The piece features remarks from asset management partner Melissa Bender. 

Melissa cautions that new investors, who may not be accustomed to regulatory issues in the asset management sector, should be wary of federal regulations affecting tech and start-up investments. “Some special-purpose vehicle structures used by angel investors might … contravene securities regulations,” Melissa notes, adding that “high-profile angels sometimes charge fees to arrange deals. US Securities and Exchange Commission rules require that investment advisers register or qualify for an exemption from registration and that persons paid transaction fees comply with broker-dealer requirements.” 

The article was also re-published by the Los Angeles Times, titled “For Silicon Valley tech tycoons, angel investing is a status symbol.”

Cookie Settings