There are currently two principal proposals pending in Congress that each would effectively eliminate the exemption from registration under the Investment Advisers Act of 1940 (the “Advisers Act”) used by many private fund advisers. On March 15, 2010, Senator Dodd, Chairman of the Banking Committee, proposed the “Restoring American Financial Stability Act of 2010” (the “Stability Act”), which includes the “Private Fund Investment Advisers Registration Act of 2010” (at Title IV) (the “Senate Proposal”). At the end of last year, on December 11, 2009, the House of Representatives approved “The Wall Street Reform and Consumer Protection Act” (H.R. 4173) by a vote of 223-202, which includes the “Private Fund Investment Advisers Registration Act of 2009” (at Title V) (the “House Bill”).

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