Increase in the maximum number of participants in a non-public investment fund from 49 to 99

We are pleased to announce that the draft proposal on increasing the maximum number of participants in non-public investment funds, which was identified through the SME public-private dialogue platform and developed by the expert teams of the Ministry of Economy of the Republic of Armenia and the Investment Council of Armenia, has been adopted by the National Assembly in the second reading.

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What has changed in practice? Under the previous regulation, according to the Law on Investment Funds, a non-public investment fund could have a maximum of 49 participants. In practice, this limitation created a significant obstacle to the growth and operation of such funds, as they were compelled to focus primarily on attracting large investors in order to avoid exceeding the permitted maximum number of participants.

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At the same time, the market often demonstrates stronger interest from investors willing to make small and medium-sized investments. However, due to the existing restriction, attracting such investments was not economically efficient and limited the growth potential of investment funds.

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With the adopted amendment, the maximum number of participants in non-public investment funds has been increased from 49 to 99.

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This change will enable funds to attract a broader range of investors, increase capital inflows, and create a more flexible and efficient investment environment.

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This legislative reform marks an important step toward the development of Armenia’s investment ecosystem. The amendment is expected to provide a significant boost for IT startups and other high-growth businesses by expanding their opportunities to raise financing through non-public investment funds.