Private Equity Funds

SEC Proposes Expanding ‘Accredited Investor’ Definition

In a move likely to be at least partially welcomed by advocates of private funds and those that advise them, the SEC on September 18 proposed to widen the definition of who qualifies as an “accredited investor.” Under the proposed new definition, while wealth would continue as a factor, professional knowledge, experience or certifications would also count.

Private Fund Adviser Settles Hidden Compensation Allegations with SEC

Failure to disclose compensation is one of those violations almost guaranteed to draw an SEC enforcement action. The agency sees a large part of its mission as protecting investors, so when it suspects that an advisory firm has not been upfront in disclosing what and how it will get paid from clients, expect them to […]

Private Fund Investment Managers Subject to Share Class Violations

Mutual fund managers are not the only advisers subject to allegations that they placed clients in more expensive share classes when lower-priced share classes for the same investments were available. An adviser making private fund investments found this out the hard way earlier this month when it settled charges that it failed to disclose conflicts […]

Private Fund Name-Sharing in Certain Foreign Countries Raises Concerns

Hedge funds or private equity funds organized and offered by banking entities and affiliated advisers in certain foreign countries may not, under current law, be allowed to share the same name or even a variation of the same name with that bank or adviser. This may cause a problem, because countries like China or Taiwan have local regulations that may require the use of the same name. Some in the industry are asking for relief to deal with this issue.

Private Equity Adviser Settles Purchasing Agreement Conflict of Interest Charges

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.

SEC Data Show Continued Growth of Private Funds

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.

PF Manager Settles Charges Involving Conflicts, Disclosure and Exam Findings

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.

Private Fund Adviser and Owner/CCO Settle Multiple Charges with SEC

The SEC is long past the day of being unfamiliar with private fund advisers. It knows what to look for when it investigates and isnt shy about enforcement actions. When it finds a situation where the owner of the advisory firm is also the chief compliance officer, dont be surprised if it makes an example of the case.

PF Managers of Buyer and Seller Real Estate Funds Must Do Right by Both

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 firms percentage of ownership in each.

Real Estate Investment Strategies in Offering Docs Must be Clear and Followed

If your private funds 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 funds 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.

Audio Interviews

How to Read an SEC Enforcement Action

Stern Tannenbaum law firm partner Aegis Frumento on how to get the most from reading an SEC administrative order or court complaint.

Most Important Supreme Court Decisions for Advisers and Funds

Find out the high court decisions from recent years that are likely to affect how advisers and investment companies work from Debevoise partner Robert Kaplan. 

Top 10 Cybersecurity Steps to Take Now

Sutherland law firm partner Brian Rubin shares the most urgent cybersecurity steps for investment advisers.

Top Marketing Problems … and Solutions

Get solutions for the top marketing challenges that advisers face from ACA Compliance Group managing director Kimberly Daly

Watch Out for 5 Cybersecurity Myths

ACA Aponix Director Pascal Busnel on the most common cybersecurity myths that may cause firms to spend resources where they may not be needed.

The Hidden Costs of Non-Compliance

Proskauer law firm partner and former SEC Division of Investment Management deputy director Robert Plaze on why the costs of non-compliance go way beyond an SEC penalty.

CCO Liability: How to Protect Yourself

Find out from Blue Edge Capital CCO Margaret Fretz what chief compliance officers may be liable for and best practices to make sure you are protected.

Ethics or Compliance: Making the Choice

Find out the difference an ethics, rather than a compliance, perspective makes at an advisory firm from former Ethics and Compliance Officer Association COO Timothy Mazur.