Look-Through Rules

Look-through rules, as established by Section 3(c)(1) of The Private Investment Company Exclusion, pertain to the limit on the number of investors that a venture fund can accept. The rules dictate that any company that invests in a venture fund can be counted as a single investor, unless the company owns more than 10% of the fund, in which case the fund must “look through” count all shareholders in the company towards their investor limits.