Key Takeaways
- • Accel, the Palo Alto-based venture capital firm, registered with the U.S. Securities and Exchange Commission as an investment adviser under the name Accel Management Co., according to Bloomberg.
- • The firm manages about $30 billion and will now be subject to increased disclosure and compliance requirements and regular SEC examinations.
- • The registration is a tradeoff that allows Accel to buy more shares of non-public companies that have been changing hands at steep discounts on private markets.
- • Accel is the latest venture capital firm to accept heightened SEC regulation in order to participate in the secondary market.
Summary
Accel, a venture capital firm based in Palo Alto, California, has registered with the U.S. Securities and Exchange Commission as an investment adviser, according to Bloomberg. The registration entity is called Accel Management Co. The firm manages roughly $30 billion in assets.
As a registered investment adviser, Accel will be subject to increased disclosure and compliance requirements and to regular SEC examinations. Bloomberg describes the move as a tradeoff: in exchange for accepting heightened regulation, the firm gains the ability to purchase more shares of non-public companies. Those shares have been changing hands at steep discounts on private markets, a segment that has seen substantial activity in the secondary market for private company stock.
Accel is described as the latest venture capital firm to take this step, indicating a broader trend among VC firms seeking to access secondary-market opportunities under a registered framework. The source article does not provide further details on specific transactions, fund sizes for secondary vehicles, or timing of planned purchases.
As a registered investment adviser, Accel will be subject to increased disclosure and compliance requirements and to regular SEC examinations. Bloomberg describes the move as a tradeoff: in exchange for accepting heightened regulation, the firm gains the ability to purchase more shares of non-public companies. Those shares have been changing hands at steep discounts on private markets, a segment that has seen substantial activity in the secondary market for private company stock.
Accel is described as the latest venture capital firm to take this step, indicating a broader trend among VC firms seeking to access secondary-market opportunities under a registered framework. The source article does not provide further details on specific transactions, fund sizes for secondary vehicles, or timing of planned purchases.
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