SEC Examinations

The Madison Capital Funding case reads like a warning to an industry, Weil, Gotshal & Manges poaches David Greene as it builds out its fund formation practice and securities class action lawsuits dip slightly.

The volume of state antitrust legislation is lower than last year (so far), but the intensity is much, much higher. Meanwhile, AIC staffs up for state lobbying, portco counsels are sweating and Keith Cassidy is no longer merely ‘acting’ exams overlord.

US regulators have shown an abiding interest in post-commitment fees, and here’s how GPs can stay above reproach.

‘Limited partners know that there are going to be fees,’ Weil, Gotshal & Manges partner Andrew Dean says. ‘The question is, are you following what the LPA says? And then, as a fiduciary, have you disclosed your conflicts of interest?’

Private funds not offering real-time disclosure of promotion deals nor screening out ineligible promoters and are struggling with third-party due diligence, examiners say in fresh bulletin.

‘This may be a time to whiteboard some new ideas,’ Simpson Thacher’s Adam Aderton says.

The closer private funds get to retail, the tougher the questions they will face, SEC exams division warns

Ripple effects on regulatory filings and public access offerings may also affect valuations, creating a vicious cycle, with managers likely to further lean on continuation funds as a result.