119 HR 4429 RH: Developing and Empowering our Aspiring Leaders Act of 2025 U.S. House of Representatives 2025-09-08 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

IBUnion Calendar No. 203119th CONGRESS1st SessionH. R. 4429[Report No. 119–246]IN THE HOUSE OF REPRESENTATIVESJuly 16, 2025Mrs. Wagner introduced the following bill; which was referred to the Committee on Financial ServicesSeptember 8, 2025Additional sponsor: Mr. CastenSeptember 8, 2025Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printedStrike out all after the enacting clause and insert the part printed in italicFor text of introduced bill, see copy of bill as introduced on July 16, 2025A BILLTo 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.

1.

Short title

This Act may be cited as the Developing and Empowering our Aspiring Leaders Act of 2025.

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.

September 8, 2025Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed