IB 
Union Calendar No. 687 
115TH CONGRESS 
2D SESSION 
H. R. 6177 
[Report No. 115–889] 
To require the Securities and Exchange Commission to revise the definitions 
of a qualifying portfolio company and a qualifying investment to include 
an emerging growth company and the equity securities of an emerging 
growth company, respectively, for purposes of the exemption from reg-
istration for venture capital fund advisers under the Investment Advisers 
Act of 1940. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 21, 2018 
Mr. HOLLINGSWORTH introduced the following bill; which was referred to the 
Committee on Financial Services 
AUGUST 3, 2018 
Reported with amendments, 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 June 21, 2018] 
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A BILL 
To require the Securities and Exchange Commission to revise 
the definitions of a qualifying portfolio company and 
a qualifying investment to include an emerging growth 
company and the equity securities of an emerging growth 
company, respectively, for purposes of the exemption 
from registration for venture capital fund advisers under 
the Investment Advisers Act of 1940. 
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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 2018’’. 
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, to include an 
equity security issued by a qualifying portfolio com-
pany, whether acquired directly from the company or 
in a secondary acquisition; and 
(2) revise paragraph (a) of such section to re-
quire, as a condition of a private fund qualifying as 
a venture capital fund under such paragraph, that 
the qualifying investments of the private fund are 
predominantly qualifying investments that were ac-
quired directly from a qualifying portfolio company. 
Amend the title so as to read: ‘‘A bill to require the 
Securities and Exchange Commission to revise the defini-
tion of a qualifying investment to include an equity secu-
rity issued by a qualifying portfolio company, whether ac-
quired directly from the company or in a secondary ac-
quisition, for purposes of the exemption from registration 
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for venture capital fund advisers under the Investment 
Advisers Act of 1940, and for other purposes.’’. 
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Union Calendar No. 687 
115TH CONGRESS 
2D SESSION 
H. R. 6177 
[Report No. 115–889] 
A BILL 
To require the Securities and Exchange Commis-
sion to revise the definitions of a qualifying port-
folio company and a qualifying investment to in-
clude an emerging growth company and the eq-
uity securities of an emerging growth company, 
respectively, for purposes of the exemption from 
registration for venture capital fund advisers 
under the Investment Advisers Act of 1940. 
AUGUST 3, 2018 
Reported with amendments, committed to the Committee 
of the Whole House on the State of the Union, and or-
dered to be printed 
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