Blogs

In the realm of private equity, success hinges on efficiency and expertise. As complexities grow in regulatory compliance, reporting standards, and data volume, many firms are seeking innovative strategies to enhance their operational management.

In the evolving world of private equity fund administration, offering client-focused services is essential, not just a competitive edge. With increasing competition, having a solid framework to understand and exceed client expectations sets you apart. Each fund manager is unique, with specific investment goals, risk profiles, and reporting needs.

On June 5, 2024, the United States 5th Circuit Court of Appeals issued a decision vacating the SEC private funds rule. The court determined that the SEC failed to justify the necessity and scope of the new requirements in relation to investor protection and market stability. The court’s ruling impacts all aspects of the previously established rule for private equity and hedge funds, effectively nullifying its application.

In recent years, many alternative fund managers have explored ways of enhancing operational productivity. Forward-looking firms have recognized that fund growth leads to increased operational volume, complexity, and operating expenses, and as with most things, one size does not fit all when it comes to outsourcing.

Regulatory change is here for Private Fund Advisers. As of August 23, 2023, the SEC implemented new regulations and updates known as the “Private Fund Adviser Rules” (Rules) under the Investment Advisers Act of 1940. The Rules represent the most notable regulatory influence on Private Funds since 2010. These regulations impact both SEC-registered and unregistered private fund managers.

On January 10, 2024, the Securities and Exchange Commission (“SEC”) granted approval to spot bitcoin exchange-traded products, a little over 10 years after the first application with the SEC to create a spot bitcoin product. Within the first three days of trading, bitcoin exchange-traded funds (ETFs) pulled in just under $900 million from investors. While it may be tempting to jump on the bandwagon to invest in a spot bitcoin ETF, there are several matters that investment advisers of registered mutual funds (or exchange-traded funds) should consider before adding this asset class to a fund’s investment strategy.