Facebook Fund Tests SEC Resolve

By Joseph A. Giannone

The efforts by Facebook to raise as much as $1.5 billion outside of regulated markets is the latest test of the walls between private and public markets.

Goldman Sachs this week approached its best private wealth clients with a tantalizing offer: a special fund that will own shares in the fast-growing social networking giant. Goldman gets to offer clients a hot investment opportunity, while Facebook gets to remain a private company.

It is the latest in a growing trend: the blurring of public regulated markets and hands-off private markets.

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