On June 1, 2016, the Securities and Exchange Commission (the “SEC”) filed and settled an administrative proceeding against Blackstreet Capital Management, LLC (“Blackstreet”) and Murry N. Gunty, the principal owner and managing member of Blackstreet (“Gunty”).1 In order to settle the proceeding, Blackstreet and Gunty agreed to pay approximately $3.1 million. This settlement order highlights the SEC’s continued focus on the private equity fund space and, in particular, evidences the SEC’s renewed interest in the receipt of transaction fees by private equity fund advisers as part of a determination of whether such advisers may need to register as broker-dealers.
via SEC Enforcement Action Highlights Need for PE Fund Advisers to Address Potential Broker-Dealer Issue — Kramer Levin
