16 Aug 2022
Mind your Fees and Qs: Fee and Expense Guidance for Private Fund Managers
The U.S. Securities and Exchange Commission (SEC) frequently focuses its examination and enforcement efforts on how private fund managers disclose the allocation of fees and expenses to investors. Since 2012, the start of the SEC’s Presence Exam Initiative, the SEC’s Office of Compliance Inspections and Examinations (OCIE) routinely makes fee and expense disclosures and practices one of the areas of greatest scrutiny with respect to private fund managers. In addition to satisfying fiduciary obligations as investment advisers under Investment Advisers Act of 1940, private fund managers should also be mindful of the demands of institutional investors for increased transparency regarding fees and expenses, and be sure that disclosures are clear, practices are transparent to investors, and that fee and expense policies are followed by employees and service providers alike.
Related Content
- Investor’s Counsel Conducting the Private Equity Fund Review
Read this guidance from the perspective of investor counsel to learn how to analyze and negotiate the fee and expense provisions in private equity fund documentation. - SEC Enforcement Priorities for Private Equity Firms
Consult this explanation of recent SEC cases and regulatory initiatives that provide useful insights and recommendations for fund counsel’s compliance activities. - Transaction Fee Side Letter Clause (Private Equity Fund)
See this sample side letter clause that details the transaction fee disclosure arrangement between a private equity fund manager and an investor in the fund.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- SUMMER RESOURCES: Share this fundamental guidance with your firm’s summer associates to help them sharpen their research and writing skills, get the inside scoop on summer associate survival, and hit the ground running in investment management. Review these resources in the Summer Associate Resource Kit: Investment Management
- The Practical Guidance Journal Summer 2022 Edition features insights on ransomware, cybersecurity, and oil & gas industry trends.
- Listen Up! The Practical Guidance Podcast features interviews with industry-leading attorneys on cutting edge issues in the law: NFTs, Cannabis, COVID, and more.
Experience results today with practical guidance, legal research, and data-driven insights—all in one place.
Experience Lexis+