The Securities and Exchange Commission (SEC) has adopted new rules that impact the regulation of private fund advisers. The regulator’s intent is to improve transparency, competition and efficiency while protecting all investors, regardless of their size or level of sophistication.
Some of the proposals partially reflect current market practice (e.g., elements of the quarterly reports and fairness reports on general partner (GP)-led secondaries) while others (the preferential treatment rule) are less well-established practices. There are some GPs that accept such terms, but many still keep their arrangements with preferred-status limited partners (LPs) behind most-favored-nations (MFN) carve-outs.
Read the full insight to learn more about these new rules, as applied to: