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No calls, no emails and no meetings. That’s the order this week from Aquiline Capital Partners to its staff. The private equity firm is putting all employees on vacation, people familiar with the matter said. It’s an unusual move intended to recognize employees and avoid burnout from the physical and mental pressure of the COVID-19 […]
How much more aggressive will the SEC be in its approach towards private funds and their managers? That will depend largely on whether Mr. Gensler is confirmed as Chair and who is selected as the next Director of Enforcement, as well as the SEC’s budget and ability to hire additional staff. But regardless, private fund […]
A cyber breach can have serious legal, financial, and reputational consequences for a fund sponsor, as described in our previous post. As such, cybersecurity threats must be treated as business risks, not just a potential IT problem. Senior management at fund sponsors should take the lead to ensure that the sponsor is taking appropriate actions […]
In a series of enforcement cases over the past few months, the SEC has continued to bring actions focused on undisclosed fees charged to clients. Many of these cases have charged firms with fraud and other violations based on fees that were not adequately disclosed. While some attention has focused on retail wealth managers, institutional […]
Today, we are launching a proprietary database tracking all SEC enforcement actions involving private equity advisers. The database contains key information from the actions, including summaries of key issues, settlement terms, and relevant statutory provisions. The database will be an important resource for us and our clients, providing us with quick access to comparable cases […]
Sure, they have billions of dollars invested and spend millions in consulting and advisory fees. But now, some of the world’s largest private equity investors, along with an industry group, are demanding oversight over the industry they’re largely funding. On Tuesday, the Institutional Limited Partners Association and 35 of its member institutions sent a letter […]
Over the last several years, the Securities and Exchange Commission (“SEC”) has targeted private equity funds for various fee allocation arrangements and conflicts of interest. Rather than describing the fee practices as fraudulent, which would require a showing of scienter, the SEC has concluded that the private equity advisers committed disclosure violations. However, a recent […]
As a result of the SEC probe and despite public warnings, the SEC has now announced approximately a dozen actions against PE managers, including some of the largest and most prominent firms. Penalties, including disgorgement and fines now total nearly $150 million in settled cases. via INSIGHT: SEC delivering on promise to scrutinize private equity […]
H.R. 5424 would reduce the amount of information that private equity and hedge fund managers have to disclose either to investors or to the Securities and Exchange Commission (SEC). They don’t disclose enough information as it is. But thanks to some modest requirements imposed on them by the Dodd-Frank Act, we know more now than […]