The SEC adopted a rule that adjusts for inflation the dollar threshold used in defining a “qualifying venture capital fund” under Section 3(c)(1) of the Investment Company Act of 1940. The final rule increased the current standard from $10 million to $12 million based on the Personal Consumption Expenditures Chain-Type Price Index. The exemption now allows qualifying venture capital funds to have up to 250 “beneficial owners” or investors (rather than 100) who are accredited investors as long as the fund has no more than $12 million in commitments. The final rule also allows the SEC to adjust for inflation this threshold amount by order every five years and specifies how those adjustments will be determined.