Why It Matters

The Alternative & Direct Investment Securities Association (ADISA) is engaging with federal lawmakers as Congress reviews the rules governing alternative investments. Bipartisan proposals like the INVEST Act and Equal Opportunity for All Investors Act aim to expand accredited investor definitions beyond wealth metrics, which could increase the potential customer base for non-traded Real Estate Investment Trusts (REIT) and Business Development Companies (BDCs) . Conversely, proposals to reclassify carried interest as ordinary income would alter the tax treatment of member earnings.

ADISA’s current advocacy focuses on managing these changes to investor access while addressing potential tax increases.

By the Numbers

ADISA spent $50,000 on in-house lobbying during the fourth quarter of 2025. Since 2006, the organization has maintained a consistent advocacy presence, totaling over $4 million across 118 disclosure reports. The association relies primarily on internal staff for its federal engagement. Its in-house team, active since 2008, accounts for almost $2.5 million of its total spending. Historical external support has been provided by several firms, including Washington Council Ernst & Young, which received over $1 million between 2006 and 2014, and HillStaffer LLC, which accounted for $455,000 from 2016 to 2025. Additionally, the association reported $100,000 in payments to Skadden Arps from 2006 to 2009.

The Agenda

ADISA’s lobbying history shows a focus on preserving Section 1031 like-kind exchanges, modernizing the accredited investor definition, and addressing fiduciary standards. Current legislative items under review include the Equal Opportunity for All Investors Act (H.R. 3339), the Fair Investment Opportunities for Professional Experts Act (H.R. 3394), the INVEST Act (H.R. 3383) and the Carried Interest Fairness Act (S. 445).

Broader Context

The legislative environment has recently trended toward expanding access to alternative investments. The sector has seen notable growth, with non-traded REIT fundraising increasing to $9.5 billion in 2025. This growth is supported by a federal policy landscape that includes the Trump administration’s prioritization of bringing alternatives into 401(k) plans and the fact that Section 1031 exchanges remained intact following recent tax policy updates, providing stability for real estate investors.

Between The Lines

Legislative momentum is evident following the December 2025 House passage of the INVEST Act, which authorizes SEC knowledge-based accredited investor tests and raises adviser exemption thresholds to $175 million. Rep. Mike Flood’s Equal Opportunity for All Investors Act, gained traction alongside the Fair Investment Opportunities for Professional Experts Act (H.R. 3394). Together, these bills aim to expand the accredited investor definition through a new knowledge-based certification exam and the recognition of specific professional credentials. However, the Carried Interest Fairness Act remains a parallel focus in both chambers, as its proposal to reclassify carried interest from capital gains to ordinary income rates would alter industry compensation structures.

Competitive Landscape

The Alternative & Direct Investment Securities Association operates alongside other trade groups with similar policy goals. The Institute for Portfolio Alternatives advocates for non-traded REITs, 1031 exchanges, and accredited investor reform. The Commercial Real Estate Finance Council also focuses on the defense of Section 1031, suggesting a coordinated industry approach to real estate tax policy.

The Bottom Line

ADISA reported $50,000 in fourth-quarter 2025 lobbying expenditures to navigate evolving federal policies on investor access and capital gains taxation. This advocacy comes as Congress moves to expand the accredited investor pool through the INVEST Act while considering the Carried Interest Fairness Act. The association’s activity reflects a dual focus on supporting market growth initiatives while addressing proposals that would change the economic structure of alternative investment firms.

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