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News June 25, 2012 Issue

SEC Releases Preliminary Data on Private Fund Adviser Registration

The SEC has 52 percent more registered private fund advisers since the Dodd-Frank Act (DFA) became law.

 

So says the SEC’s Division of Investment Management, which released its preliminary findings on the impact of the new adviser registration requirements under the DFA earlier this month.

The three-page summary comes complete with color pie charts and a graph, and offers such tidbits of information as:

  • There are approximately 3,990 registered advisers (32 percent) that say they manage one or more private funds;
  • Of all registered private fund advisers, 1,369 registered since the DFA became law (a 52 percent increase); and
  • Seven percent (284) of registered private fund advisers are foreign, and approximately half of those advisers are domiciled in the United Kingdom.

The SEC’s registered private fund advisers report that collectively, they manage 30,617 private funds with total assets of $8 trillion. Private fund assets represent 16 percent of all SEC-registered adviser assets under management.

 

Most of the private funds managed by registered advisers are classified as hedge funds (53 percent) and private equity funds (24 percent). The 23 percent of private funds in the “other” category include venture capital funds, liquidity funds, real estate funds, securitized asset funds, and others.

 

Almost two thousand (1,950) advisers filed Form ADVs as exempt reporting advisers, and 41 percent of those advisers are foreign. Exempt reporting advisers report that they manage 6,702 private funds with total assets of approximately $1.5 trillion.

 

The data provided is as of April 4 (unless otherwise noted).

 

As of April 4, the SEC showed 12,623 registered advisers managing approximately $48.8 trillion. IM anticipates that approximately 2,400 mid-sized advisers will switch to state registration by June 28, leaving approximately ten thousand advisers managing $48.6 trillion that are registered with the SEC.

 

“Using these projections, the staff anticipates that the cumulative impact of the Dodd-Frank Act registration changes will be a 25 percent decrease in the number of advisers registered with the Commission, but a 12 percent increase in the total assets under management of those registered advisers,” said the summary.