“3c1” refers to a portion of the Investment Company Act of 1940 that allows private investment companies to be considered exceptions to certain regulations and reporting requirements stipulated by the Securities and Exchange Commission (SEC). However, these firms must satisfy specific requirements to maintain their exception status. “3c1” refers to a portion of the Investment Company Act of 1940 that exempts certain private investment companies from regulations. A firm that’s defined as an investment company must meet specific regulatory and reporting requirements stipulated by the SEC. “3c1” allows private funds with 100 or fewer investors and no plans for an initial public offering to sidestep certain SEC requirements.