Treasury tells GPs to send more data

Private equity firms with certain cross-border US holdings began reporting data to US Treasury under an amended “TIC B-Form” earlier this month.

The form provides US officials a snapshot of cross-border claims and liabilities and short-term securities that Treasury uses to track how much money is coming in and out of the country and other macroeconomic research.

Previously, the TIC-B form only applied to certain US depositary and banking institutions, bank holdings companies, and broker dealers. However, the rule was altered to now include “all other financial institutions” such as private equity funds, real estate funds and hedge funds.

“This change could subject investment managers to heightened TIC reporting requirements, including more numerous forms and more frequent reporting,” said law firm Dechert in a client memo.

For private equity managers, TIC-B filing obligations would most commonly occur when investing directly in non-US debt instruments; providing credit to non-US entities; directly holding non-US short-term securities; or maintaining a credit facility with a non-US financial institution.

“Some US investment managers may have reported information about such holdings on TIC C–forms in the past; that information is being transitioned to the TIC B-forms,” said one private equity attorney. “Generally, the TIC-B forms may be relevant for fund managers with covered cross-border holdings aggregating either over $25 million as to an individual country or over $50 million overall.”

TIC-B requires monthly and quarterly reports. Monthly reports are due no later than 15 calendar days following the last day of the month. Quarterly reports are due no later than 20 calendar days following the last day of March, June, September and December. The first monthly filing for GPs was due on January 15.