SEC sharpens private equity focus

Author: Edward Price | Published: 26 Apr 2016

The Securities and Exchange Commission (SEC) turned its attentions to private equity (PE) in 2012 and introduced the need for funds to register, a game changer for the industry at the time. Four years on, counsel are considering the impact of the changes.

Key themes are changes in disclosure practices and an increasingly sophisticated SEC understanding of what funds do and why. And in practical terms, PE funds themselves are learning to live with increased scrutiny.

"Post-registration, it’s perpetually the case that at any point, the SEC could come in," said Eva Carman, partner at Ropes & Gray. "This ability to come in gives the SEC a much better insight into what’s happening."

SEC approach

From the perspective of the PE industry, there’s the perception of a serious uptick in regulatory attention.

"The SEC is cracking down and taking a much closer look under the hood...