Which description applies to the Private Fund Advisors exemption regarding assets under management?

• A. Advisors solely to private funds with less than $150 million in assets under management in the US
• B. Advisors to public mutual funds
• C. Advisors with more than $1 trillion AUM
• D. Advisors to state and municipal funds

Answer: (A)

The essential idea is that the Private Fund Adviser exemption applies to advisers who exclusively manage private funds and have assets under management below a specific threshold in the United States. When an adviser meets both conditions—solely private funds and less than $150 million AUM in the US—they’re not required to register with the SEC as investment advisers. This exemption isn’t for advisers to public mutual funds or state/municipal funds, and it doesn’t apply to firms with very large AUM, who would need to register. So the description that fits is advisers who manage only private funds with under $150 million in US AUM.