The SEC’s push to conduct narrowly focused examinations of newly registered investment advisers is ahead of schedule and providing it with insights about compliance weaknesses, hedge fund advisers, and private
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Hedge and Private Equity Funds
The SEC And Never Been Examined Firms
By Ernest Badway on
The SEC has launched an investment adviser examination initiative to review those who have never been examined including advisers domiciled outside the United States.
If an adviser has been registered…
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SEC Announces Exam Priorities
By Ernest Badway on
Tis the season for the regulators to announce their examination priorities. No less than the SEC’s Office of Compliance Inspections and Examinations released its 2014 Examination Priorities for its National…
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What To Expect In 2014 From The SEC’s Enforcement Division
By Joshua Horn on
Now that 2014 is here, it is a good idea to understand what the Enforcement Division might focus on this year. In a recent article that appeared in the BNA, …
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COLLUSION CLAIMS AGAINST PRIVATE EQUITY FIRM PROCEEDS
By Ernest Badway on
Former shareholders may pursue narrowed claims against some large private equity firms who allegedly conspired with one another minimizing competition for target companies. See Dahl v. Bain Capital Partners LLC, …
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FINRA and Alt Funds Risks
By Ernest Badway on
FINRA issued an investor alert regarding the “unique characteristics and risks” presented by “alternative funds.” See http://op.bna.com/srlr.nsf/r?Open=rhil-98ktb8.
In a release, FINRA explained that “alt” mutual funds are United States…
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PRACTICES BY PRIVATE FUND ADVISERS RAISE B-D REGISTRATION ISSUES
By Ernest Badway on
In its scrutiny of newly registered private fund advisers, the SEC Staff has observed two practices that might implicate broker-dealer registration requirements.
The first practice involves fund advisers that pay…
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VENTURE CAPITAL FUND WINS DISMISSAL MOTION OVER INVESTMENT
By Ernest Badway on
The U.S. District Court for the District of New Jersey ruled that New Jersey fraud and misrepresentation claims by a venture capital firm over an unsuccessful investment in a telecom…
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“Burger King” May Not Allow You to Have it Your Way. . . Is the Two-Tier M&A Deal Ending?
By Ernest Badway on
A popular two-tier merger and acquisition structure may trigger certain prohibitions under the Securities Exchange Act of 1934. In particular, this problem relates to the so-called “Burger King” structure, arising from the private equity…
You Have to Make Sure Your Private Equity Firm Has D&O Coverage When Responding to Subpoenas
By Ernest Badway on
Private equity companies have recently been hit with a barrage of regulatory subpoenas.
Responding to these subpoenas may cost the private equity firms to expend millions of dollars. These entities should…