News & Events

Michael Osnato, Co-Head of the Firm’s Funds Regulatory and Investigations group, and Michael Wolitzer, Head of the Firm’s Investment Funds Practice, were featured in a Q&A in Private Equity Law Report titled, “PE Industry in 2024: Navigating an Uncertain Examination and Regulatory Environment.” The article, part one of a two part series, detailed their expectations on the nature and focus of SEC examinations, as well as regulatory happenings likely to affect the PE industry in 2024. Michael Osnato explained that, factoring in the intensifying focus on private funds, “we expect Examinations to be very active in 2024. That will likely manifest in the form of both a high exam volume and an aggressive focus from examiners.” He further noted that “In 2024, we expect AI to enter the mainstream of exams through a standard module of questions in ordinary course exams that explore whether a firm is using AI.” Michael Wolitzer highlighted that “the SEC may zero in on certain types of conflicts of interest because it pulled back on them somewhat in the Private Fund Rules,” adding that there is likely to be additional activity in the bread-and-butter areas identified in the SEC’s recently released 2024 examination points. He also described how industry participants are moving forward in light of the uncertainty around the challenge to the Private Fund Rules in the Fifth Circuit, explaining “we are definitely not advising clients to hold off on preparing for the requirements in the Private Fund Rules.”

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