IB 
Union Calendar No. 203 
119TH CONGRESS 
1ST SESSION H. R. 4429 
[Report No. 119–246] 
To require the Securities and Exchange Commission to revise the definition 
of a qualifying investment, for purposes of the exemption from registra-
tion for venture capital fund advisers under the Investment Advisers 
Act of 1940, to include an equity security issued by a qualifying portfolio 
company and to include an investment in another venture capital fund, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2025 
Mrs. WAGNER introduced the following bill; which was referred to the 
Committee on Financial Services 
SEPTEMBER 8, 2025 
Additional sponsor: Mr. CASTEN 
SEPTEMBER 8, 2025 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 16, 2025] 
VerDate Sep 11 2014 
00:38 Sep 09, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H4429.RH
H4429
kjohnson on DSK7ZCZBW3PROD with $$_JOB
A BILL 
To require the Securities and Exchange Commission to revise 
the definition of a qualifying investment, for purposes 
of the exemption from registration for venture capital 
fund advisers under the Investment Advisers Act of 
1940, to include an equity security issued by a qualifying 
portfolio company and to include an investment in an-
other venture capital fund, and for other purposes. 
VerDate Sep 11 2014 
00:38 Sep 09, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H4429.RH
H4429
kjohnson on DSK7ZCZBW3PROD with $$_JOB
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Developing and Empow-
ering our Aspiring Leaders Act of 2025’’. 
SEC. 2. DEFINITIONS. 
Not later than the end of the 180-day period beginning 
on the date of the enactment of this Act, the Securities and 
Exchange Commission shall— 
(1) revise the definition of a qualifying invest-
ment under paragraph (c) of section 275.203(l)–1 of 
title 17, Code of Federal Regulations— 
(A) to include an equity security issued by 
a qualifying portfolio company, whether ac-
quired directly from the company or in a sec-
ondary acquisition; and 
(B) to specify that an investment in another 
venture capital fund is a qualifying investment 
under such definition; and 
(2) revise paragraph (a) of such section to— 
(A) require, as a condition of a private 
fund qualifying as a venture capital fund under 
such paragraph, that not less than 51 percent of 
the fund’s aggregate capital contributions and 
uncalled committed capital (other than short 
VerDate Sep 11 2014 
00:38 Sep 09, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H4429.RH
H4429
kjohnson on DSK7ZCZBW3PROD with $$_JOB
term holdings) shall consist of equity securities 
acquired directly from a qualifying portfolio 
company, including immediately after the acqui-
sition of any asset; and 
(B) specify that up to 49 percent of the 
fund’s 
aggregate 
capital 
contributions 
and 
uncalled committed capital (other than short 
term holdings) may consist of investments in one 
or more venture capital funds, as well as securi-
ties acquired in a secondary acquisition. 
VerDate Sep 11 2014 
00:38 Sep 09, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H4429.RH
H4429
kjohnson on DSK7ZCZBW3PROD with $$_JOB
VerDate Sep 11 2014 
00:38 Sep 09, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H4429.RH
H4429
kjohnson on DSK7ZCZBW3PROD with $$_JOB