California Business and Professions Code

§ 23405.4

BPC § 23405.4 Effective Jan 1, 2023Div. 9 · Ch. 3 · Art. 3

Statute text

(a)The department is not required to qualify for a license a person who is an investor in a private equity fund that holds an interest in a license, provided all of the following conditions are satisfied:

(1)The private equity fund’s interest in the license is limited to a passive investment, so that neither the private equity fund nor any manager, employee, or agent of the private equity fund has any involvement in, or control over, the management of the licensed business or of the licensee.

(2)The private equity fund advisers are registered under the federal Investment Advisers Act of 1940, and the private equity fund advisers are subject to, and comply with, Section 275.204(b)-1 of Title 17 of the Code of Federal Regulations.

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Legislative history

Amended by Stats. 2022, Ch. 617, Sec. 1. (SB 1202) Effective January 1, 2023.