Business and International Tax Blog

On March 12, 2025, the U.S. Securities and Exchange Commission (“SEC”) issued guidance via a no-action letter that significantly eases the path for private equity sponsors to use general solicitation in private offerings. Through a no-action letter, the SEC confirmed that sponsors relying on Rule 506(c) of Regulation D can now satisfy investor verification requirements with far less documentation, provided they set a sufficiently high minimum investment threshold and obtain basic written confirmations from investors.

For middle market sponsors, this development ...