SEC Issues Interpretive Guidance On Amended Private Equity Fund Rules

The Securities and Exchange Commission (SEC) has recently issued interpretive guidance on the new private equity fund rules published on April 4, 2025, clarifying registration thresholds, proprietary investment requirements, and fee limitations. Below is a summary of the notable amendments and their implications for fund managers and sponsors.

1. Applicability and Registration Threshold (Amended Rule 558)

Under the amended Rule 558, all Private Equity Funds are subject to SEC authorization and registration. However, Private Funds with a target fund size of ₦5 billion or less are exempt from registration, provided they submit their governing documents to the SEC for a "no objection" prior to raising capital.