[Congressional Record Volume 168, Number 157 (Wednesday, September 28, 2022)]
[Senate]
[Page S5483]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5977. Mr. DAINES submitted an amendment intended to be proposed to 
amendment SA 5499 submitted by Mr. Reed (for himself and Mr. Inhofe) 
and intended to be proposed to the bill H.R. 7900, to authorize 
appropriations for fiscal year 2023 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes; which was 
ordered to lie on the table; as follows:

        At the appropriate place, insert the following:

     SEC. ___. CLOSED-END COMPANY AUTHORITY TO INVEST IN PRIVATE 
                   FUNDS.

       (a) In General.--Section 5 of the Investment Company Act of 
     1940 (15 U.S.C. 80a-5) is amended by adding at the end the 
     following:
       ``(d) Closed-End Company Authority To Invest in Private 
     Funds.--
       ``(1) In general.--The Commission may not limit a closed-
     end company from investing any or all of the assets of the 
     company in a private fund solely or primarily because of the 
     status of the fund as a private fund.
       ``(2) Application.--Notwithstanding section 6(f), this 
     subsection shall apply to a closed-end company that elects to 
     be treated as a business development company pursuant to 
     section 54.''.
       (b) Definition of Private Fund.--
       (1) Investment company act of 1940.--Section 2(a) of the 
     Investment Company Act of 1940 (15 U.S.C. 80a-2(a)) is 
     amended by adding at the end the following:
       ``(55) The term `private fund' means an issuer that would 
     be an investment company but for the exception provided for 
     in paragraph (1) or (7) of section 3(c).''.
       (2) Investment advisers act of 1940.--Section 202(a) of the 
     Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)) is 
     amended--
       (A) by redesignating the second paragraph (29) (relating to 
     ``commodity pool'' and other terms) as paragraph (31); and
       (B) by amending paragraph (29) to read as follows:
       ``(29) The term `private fund' has the meaning given the 
     term in section 2(a) of the Investment Company Act of 1940 
     (15 U.S.C. 80a-2(a)).''.
       (c) Treatment by National Securities Exchanges.--Section 
     6(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78f(b)) is amended by adding at the end the following:
       ``(11)(A) The rules of the exchange do not prohibit the 
     listing or trading of securities of a closed-end company by 
     reason of the amount of the investment by the company of 
     assets in private funds.
       ``(B) In this paragraph--
       ``(i) the term `closed-end company'--
       ``(I) has the meaning given the term in section 5(a) of the 
     Investment Company Act of 1940 (15 U.S.C. 80a-5(a)); and
       ``(II) includes a closed-end company that elects to be 
     treated as a business development company pursuant to section 
     54 of the Investment Company Act of 1940 (15 U.S.C. 80a-53); 
     and
       ``(ii) the term `private fund' has the meaning given the 
     term in section 2(a) of the Investment Company Act of 1940 
     (15 U.S.C. 80a-2(a)).''.
       (d) Investment Limitation.--Section 3(c) of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-3(c)) is amended--
       (1) in paragraph (1), in the matter preceding subparagraph 
     (A), in the second sentence, by striking ``subparagraphs 
     (A)(i) and (B)(i)'' and inserting ``subparagraphs (A)(i), 
     (B)(i), and (C)''; and
       (2) in paragraph (7)(D), by striking ``subparagraphs (A)(i) 
     and (B)(i)'' and inserting ``subparagraphs (A)(i), (B)(i), 
     and (C)''.
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