From: Stewart Alsop
Comment: I am confused about the term "private equity". I have believed that, given the test of being a sophisticated investor, it was possible to invest without disclosing publicly the existence of the investment. I believed it was possible to keep private investments private.
Regulation D is, I believe, designed to protect individual, unsophisticated investors from what are generally referred to as "blue sky" investments, very high risk investment proposals that are not regulated under the rules of public investing. With the arrival of computer technology and the internet network, these filings are becoming increasingly public.
I hope that the Securities and Exchange Commission can manage to distinguish between sophisticated and unsophisticated investors, according to commonly accepted definitions already in place, and make it possible for sophisticated investors to continue to operate without disclosing their investments.