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Michael Wolitzer Quoted in Private Equity International on Preferential Treatment Provision of SEC Private Funds Rules
09.11.23
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Michael Wolitzer, Head of the Firm’s Investment Funds Practice, was quoted in a Private Equity International article titled, “SEC Rules Throw a Spanner in the Works for Fundraising.” The article discussed the disclosure requirement on preferential treatment that was included in the SEC’s final Private Fund Advisers rule. When discussing how the SEC’s final rule will increase complexity for GPs and their legal advisors when determining how to disclose these terms, Michael noted that they will now need to make judgment calls on special arrangements that could have a “material, negative effect” on other LPs. In other words, he explained, every time a GP grants any type of side letter, it needs to think about how that relates to either liquidity or reporting, and how it impacts other LPs.
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