News & Events

Litigation Partner Michael Osnato was quoted in an article published by Hedge Fund Law Report titled “SEC Risk Alert Reflects Growing Concerns About and Focus on Private Funds.” The article detailed key takeaways from the SEC Division of Examinations’ recent risk alert, which was a follow-up to its June 2020 risk alert on observations from examinations from private fund advisers. This alert explored additional observations pertaining to failures to act in accordance with disclosures, misleading performance and marketing materials, inadequate investment due diligence and due diligence of service providers, and the use of “hedge” clauses. With reference to implications for private funds, Michael noted that while many of the observations identified in the alert are not new, they highlight that the SEC is rapidly accelerating their effort to focus in on the private funds industry. He further explained how, “the Risk Alert takes an extremely skeptical view of the adequacy of many of the core functions of private fund advisers, including fee calculations, consultations with LPACS, due diligence and marketing practices.”

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