Who’s Really Using 506(c)

There’s a myth in the market that everyone is using 506(c) now, and that every GP is suddenly out marketing their fund on LinkedIn and in podcasts. Not quite.

It’s b******t. It’s also not true that it’s a requirement to use 506c to participate in all of our programs. (It may be helpful depending on your fund stage, and the long answer’s here).

Since 2020, roughly 5–12% of all U.S. private funds have raised under Rule 506(c).

The rest - and this is the overwhelming majority - are still under 506(b): no public marketing. Yep, that’s relationship-driven, quiet capital.

The pattern‘s clear:

• Emerging VCs and digital-first managers use 506(c) to get attention.

• Everyone else — PE, credit, infra, hedge, later-stage VC — stays with 506(b) because discretion is the brand. There are also considerations around metrics.

We broke it all down in our latest post:

👉 Who Actually Uses 506(c) — and Who Doesn’t

(If you’re raising Fund I, II, or III, read this. It’ll save you six months of trial and error.)