Banner Ridge Closes Third Fund with 3(c)(7) Structure
Emerging fund manager Banner Ridge has closed its third fund using a 3(c)(7) structure, which limits investments to qualified purchasers, according to SEC EDGAR. This structure allows the fund to operate under exemptions from the Investment Company Act, targeting high-net-worth individuals and institutions.
The 3(c)(7) Structure in Practice
The 3(c)(7) structure enables private funds to restrict investments to qualified purchasers, as specified in the filing. It provides exemptions from extensive disclosure requirements under the Investment Company Act, a practice that has been common in private equity since the 1990s. For Banner Ridge, this approach focuses on investors with significant financial resources, supporting efficient capital raising for the fund.
Insights from the SEC Filing
The SEC filing is an amendment (Type: D/A) under the Securities Act of 1933 (Act: 33), with a file number of 021-540858. It includes an Employer Identification Number (EIN) of 000000000 and a state of incorporation coded as E9, which refers to a jurisdiction like Delaware. The fund’s fiscal year end is December 31, reflecting standard industry procedures. These details outline the fund’s regulatory setup, though specific changes in the amendment are not detailed.
