Saturday, 20 December 2014
Last updated 15 hours ago
Apr 14 2014 | 11:06am ET
The U.S. Securities and Exchange Commission examined 400 private equity firms and found that more than half inflated the fees and expenses charged to portfolio companies.
Citing a person “with knowledge of the SEC's findings,” Bloomberg reported that while some of the problems seem to represent mistakes, some may have been deliberate.
The 2010 Dodd-Frank Act gave the regulator greater authority to monitor the $3.5 trillion p.e. space. According to the source, by December 2012, SEC examiners had found evidence of miscalculation of fees, improper collection of money from portfolio firms and use of fund assets to cover company expenses.
“A lot of the practices, in the eyes of the SEC, raise conflicts,” Barry Barbash, co-head of the asset-management group at Willkie Farr & Gallagher in Washington, told Bloomberg. “The SEC wants those conflicts aired out and wants certain practices ultimately changed, and I’m sure we’re going to see it.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.