Explore how venture capital operating companies provide a critical exemption from ERISA regulations for private funds, allowing pension plan investments through strategic management rights arrangements.
Best quote from VCOC: The Private Fund ERISA Escape Hatch
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The VCOC exemption is essentially the government acknowledging that venture capitalists are more like business operators than traditional money managers. If you want to avoid being treated as a plan asset manager, you need to show that you're actively involved in managing the businesses you invest in, not just passively providing capital.
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