News & Events

Michael Wolitzer, Head of the Firm’s Investment Funds Practice, was quoted in a Law.com article titled, “'They Didn't Blow Up the World': Big Law Reacts to New SEC Fund Rules,” and a FundFire article titled, “Hedge Funds Zero In on Side Letters, Preferential Treatment with SEC Private Funds Rule,” which highlighted the SEC’s newly adopted substantial rules for private equity firms and hedge funds. When discussing the rules with Law.com, Michael noted that there “clearly was a pullback from the initial proposal” and that “this is now more of a disclosure and reporting statute with some substantive regulation changes.” Michael additionally stated that challenges are to be expected. “The most substantive regulations did go away, but there is still a lot here that the industry finds concerning. The challenge could come in the form of saying the SEC did not do an adequate economic analysis or that they are exceeding their authority,” he added. When speaking with FundFire, he indicated that many areas, especially side letters, will require a lot of thought to determine how firms will manage those.

To read the Law.com article, please click here (subscription required).

To read the FundFire article, please click here (subscription required).