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The weekly news source for investment management legal and compliance professionals

Topic: Private Equity Funds

Private Equity Adviser Settles Purchasing Agreement Conflict of Interest Charges

April 27, 2018  Private equity advisers need to be careful before signing agreements with group purchasing organizations (GPOs). Those agreements may contain conflict-of-interest traps that amount to a breach of fiduciary duty and that should be avoided at all costs.
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SEC Data Show Continued Growth of Private Funds

February 9, 2018  Private funds, whether hedge funds, private equity funds or most other types, continued to grow at a steady rate through the second quarter of 2017.
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PF Manager Settles Charges Involving Conflicts, Disclosure and Exam Findings

January 5, 2018  A private fund manager that the SEC accused of not acting in a timely fashion on multiple examination findings was taken to federal court by the agency, which charged him with, among other things, engaging in conflicted transactions and misleading investors. The manager, Louis Mohlman, Jr. and his two advisory firms reached a settlement with the SEC the same day.
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Private Fund Adviser and Owner/CCO Settle Multiple Charges with SEC

August 18, 2017  The SEC is long past the day of being unfamiliar with private fund advisers. It knows what to look for when it investigates and isn’t shy about enforcement actions. When it finds a situation where the owner of the advisory firm is also the chief compliance officer, don’t be surprised if it makes an example of the case.
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PF Managers of Buyer and Seller Real Estate Funds Must Do Right by Both

August 4, 2017  Private fund advisers specializing in real estate transactions need to beware. Steer clear of conflicts of interest when selling property from one client fund to another. Disclosure must be your watchword and favoritism cannot be shown to either fund, regardless of your firm’s percentage of ownership in each.
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Real Estate Investment Strategies in Offering Docs Must be Clear and Followed

July 28, 2017  If your private fund’s offering documents state that your fund will invest only in real estate, be aware that those are not just words. Stepping outside the parameters of your fund’s stated investment strategy may lead to trouble, both for the fund and for the fund manager. This is also true with unclear and/or inconsistent investment strategy wording between your private placement memorandum and other fund documents. Language, it turns out, matters.
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SEC Scrutinizes PE Fund Manager Adherence to Operating Documents

July 20, 2017  Private equity fund managers may not be as used to SEC oversight as are other advisers. They would be wise, then, to regard a recent agency settlement as a lesson learned: The SEC will scrutinize books and records to make sure fund managers are operating within the limits of their operating documents. Those that are not may find themselves facing an enforcement action.
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