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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Private Equity Firm Prime Group for Inadequate Disclosure of Fees Paid to Affiliate
The Securities and Exchange Commission today charged Prime Group Holdings LLC, a private equity firm focused on alternative real estate asset classes, for failing to adequately disclose millions of dollars of real estate brokerage fees that were paid to a real estate brokerage firm that was owned by its CEO. Prime Group agreed to pay […]
Private Equity, Hedge Funds Brace for Coming SEC Overhaul – WSJ
The SEC’s proposed overhaul would require private funds to provide investors with quarterly statements and annual audits, increase their liability for mismanagement or negligence, and prohibit them from giving some investors more-favorable terms than others. In the 18 months since the SEC floated those ideas, private funds and their trade associations have fought to stymie […]
Private Equity Firms Exposed by Unhedged Risk, Interest Rates Surge – Bloomberg
By failing to appreciate just how much central banks would jack up rates, many private equity firms opted against hedging arrangements that could have shielded companies saddled with $3 trillion in floating-rate debt from rising interest costs, that in some cases, doubled or more. For much of the past decade, those hedges cost next to […]
SEC Queries Private Equity Firms That Yanked Cash as Silicon Valley Bank Failed – Bloomberg
A top US financial regulator is inquiring about how private equity firms steered deposits, including client funds, out of Silicon Valley Bank before its collapse. The Securities and Exchange Commission’s examinations unit has requested records of some investment firms’ money transfers and investor communications over the first three weeks of March, as well as emails […]
Greek Property Investor Bluehouse in Trouble As Legal Headaches Mount – Bloomberg
When real estate investor Yannis Delikanakis woke up from a 26-day coma in April 2020, he discovered that his bank accounts had been frozen and he’d been ousted from the private equity fund that he had co-founded 16 years earlier. Source: Greek Property Investor Bluehouse in Trouble As Legal Headaches Mount – Bloomberg
Private Equity Regulation Becomes Biden Administration Focus – Bloomberg
Private equity could use a few friends in Washington. While buyout firms have been busy protecting their lucrative carried interest fee structure in Congress, Biden administration securities, antitrust and broadcast TV regulators have quietly been undermining the industry’s business model by proposing tough rules, slow-walking deals and scrutinizing acquisitions that would consolidate industries or result […]
Private Equity Scrambles to Comply With SEC Marketing Rule as Deadline Nears – WSJ
Private-equity firms are racing to adapt to new rules about marketing funds to prospective investors, anticipating a sweep by regulators to check compliance when the directive takes effect next month. The Securities and Exchange Commission’s marketing rule—430 pages of instructions intended to prevent investment advisers from misleading clients—is set to take effect Nov. 4, nearly […]
US SEC Ramps Up Scrutiny of Private Equity Firms’ Writedowns – Bloomberg
Buyout firms have been forced to erase billions of dollars from the value of their wagers in the economic downturn, and financial regulators are now scrutinizing whether managers are reducing fees for investors when those deals sour. The Securities and Exchange Commission has been ramping up inquiries to private equity firms about whether they adjust […]
May 5 Webcast — “Sustainable” Private Equity: An In-Depth Look at ESG Trends and Challenges
Please join Rodolfo Araujo, Christopher DeSa, Jessica Monson and Danielle Reyes for this free webcast.
Everybody take the week off, Wall Street firm tells staff
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 […]