Hultgren Promotes Legislation to Increase Job-Creating Investment in Illinois
Washington, DC — U.S. Representative Randy Hultgren (IL-14) today delivered a floor statement in support of H.R. 5424, the Investment Advisers Modernization Act, which makes modest updates to the 76-year-old legislation, the Investment Advisers Act of 1940 (Advisers Act).
As he stated in his remarks, private equity firms have invested hundreds of billions of dollars in Illinois-based companies. The legislation seeks to make those investments into Illinois companies easier, promoting job growth and business expansion.
Following are Rep. Hultgren’s prepared remarks:
I rise today in support of H.R. 5424, the Investment Advisers Modernization Act.
I am proud to be a cosponsor of this legislation introduced by Congressman Hurt, and would like to thank Speaker Ryan and Chairman Hensarling for their work to bring it up for a vote.
Private equity has a long history of making a positive difference for Illinois companies, their employees, and our communities.
Over the last 10 years, private equity firms have invested hundreds of billions of dollars in Illinois-based companies. In fact, Illinois ranked Number One nationally in attractive private equity investment in 2015, according to the American Investment Council.
It comes as no surprise that these companies – backed by strong financing and experienced management – and pursuing innovative products and services – support hundreds of thousands of workers at their facilities.
In addition to the economic growth driven by private equity, we also shouldn’t overlook its importance to investors.
For example, the State Universities Retirement System of Illinois and its 200,000 members depend on investments in private equity-backed companies.
So why shouldn’t we, as legislators, seize an opportunity to make private equity investments easier?
This bill would make relatively modest updates to the 76 year-old Investment Advisers Act.
Our securities laws are meant to reflect the sophistication of the investors. We should not have cumbersome regulations intended for less-sophisticated retail investors apply to professionals with deep knowledge and expertise of investment advising.
The majority of private equity funds in Illinois are middle market, and do not have large administrative staffs. Generally, the staff includes just one or two finance professionals. The proliferation of rules, reporting and regulation at both the federal and state levels has severely taxed these firms and taken valuable resources away from the important job of identifying, investing in and growing companies, and thus our economy.
The Investment Advisers Modernization Act will reduce administrative costs, making it easier to invest in our communities, and improving the rate of return whether they are saving for retirement or for a university’s endowment.
In closing, I would like to thank Chairman Hensarling and Mr. Hurt for their leadership on this legislation.
It’s no surprise that such a commonsense bill already has a strong bipartisan record. I urge all of my colleagues to support the Investment Advisers Modernization Act.