To the dismay of many fund managers across the private markets, a near-final version of the Securities and Exchange Commission’s impending fee disclosure rules is reportedly circulating around the agency, with a rule package expected as early as this month.
The new regulation for hedge funds, private equity shops, and VC firms would be the first meaningful regulatory change since the aftermath of the financial crisis—requiring funds to furnish things like quarterly fee and expense information to all of their limited partners and stop giving preferential treatment to certain investors via side letters. The regulation would also enhance fiduciary requirements funds have to their limited partners, among other things.
