Private Equity Management Fees and Expenses: Avoiding Investor Claims and SEC Enforcement Actions

This CLE webinar 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.

The SEC continues to focus on fees, expenses, and conflicts of interest inherent in the PE manager role and has collected significant penalties from fund managers who fail to properly disclose fees, expenses, and conflicts of interest to their investors. These SEC actions provide guidance to fund managers and their counsel regarding practices to avoid and best practices for full disclosure. SEC findings reveal that the most common deficiencies relate to fees and expenses charged by managers of portfolio companies. Areas of focus include payments to consultants, shifting expenses during the fund's life, allocation of expenses, and hidden fees.

When reviewing fund investments, counsel to investors should use these enforcement actions as a roadmap for questioning fund managers about fee and expense allocations. Our faculty will highlight key case facts to illustrate where investor questions arise and where SEC scrutiny may focus to help you mitigate the risks of potential litigation and enforcement.

Listen as our authoritative panel of regulatory attorneys reviews fund fee and expense allocation deficiencies and the specific practices that have been identified as problematic. The panel will discuss best practices for reporting fees and expenses and due diligence for investors evaluating current and prospective investments.