Another challenge that may present an issue for a venture capital fund or private equity fund under the Exchange Act is the requirement that any . issuer (for our purposes, any . fund) that has more than 499 holders of record or any . issuer (. fund) that has more than 299 holders of record resident in the United States comply with public disclosure, reporting, and other obligations as a public company under the Exchange Act. As a result, great care is taken to ensure that these limits are not exceeded. Caution is particularly warranted in master- feeder structures and parallel fund structures, as the facts.
