Private Equity Management Fees and Expenses: Avoiding Investor Claims and SEC Enforcement Actions
Lessons From Recent Claims and Penalties; Procedures and Disclosures to Improve Investor Confidence
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will instruct counsel for private equity (PE) fund managers on the disclosure issues and conflicts of interest associated with fund fees and expense allocations. The panel will discuss recent SEC actions and guidance, and best practices in administration and reporting that will pass muster with investors and the SEC.
Outline
- Overview of SEC oversight and authority concerning PE funds
- Notable SEC enforcement actions on undisclosed fees and expenses
- Payments to consultants
- Shifting expenses during fund's life
- Characterization of expenses
- Hidden fees
- Investor due diligence
- Best practices in formulating and disclosing PE management fees and expenses
Benefits
The panel will review these and other key issues:
- What are the stated priorities of the SEC in examining fund managers' fees and expenses?
- What particular fee and expense practices has the SEC identified as deficient with respect to disclosure to investors?
- What due diligence steps should investors take in light of the SEC audit findings?
- What steps should funds take to review fee and expense practices to ensure investor confidence?
Faculty
Adam S. Aderton
Partner
Willkie Farr & Gallagher
Mr. Aderton’s practice focuses on regulatory enforcement matters and white collar defense. He has particular... | Read More
Mr. Aderton’s practice focuses on regulatory enforcement matters and white collar defense. He has particular experience in regulatory inquiries and litigation involving the asset management industry, including matters involving private equity funds, hedge funds, venture capital funds, mutual funds, ETFs, business development companies, and separately managed accounts. In addition to representing clients in connection with SEC and other government examinations, investigations, and litigations, Mr. Aderton provides compliance counseling to asset managers.
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Jaclyn Grodin
Counsel
Goulston & Storrs
Ms. Grodin represents companies, private equity firms, hedge funds, investment advisers, real estate entities, and... | Read More
Ms. Grodin represents companies, private equity firms, hedge funds, investment advisers, real estate entities, and individuals in a wide range of business disputes including partnership and investor actions, financial fraud cases, securities-related matters, government investigations, trade secret litigations, and intellectual property controversies. Prior to joining the firm, Ms. Grodin spent more than three years as an Assistant Attorney General in the Investor Protection Bureau of the New York State Office of the Attorney General, where she worked on numerous high-profile investigations, including for violations of New York’s Martin Act by investment advisers, asset managers, and broker-dealers as well as law enforcement’s violation of state and federal constitutional rights.
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Nicole Krea
Partner
Ropes & Gray
Ms. Krea is a partner in the corporate department and asset management group. Nicole focuses her practice on private... | Read More
Ms. Krea is a partner in the corporate department and asset management group. Nicole focuses her practice on private investment funds, and routinely advises fund sponsor clients regarding various fundraising, regulatory and compliance matters. She also represents institutional investors and funds of funds in connection with their investments in private funds and in co-investments.
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