Home Regulation

Regulation

Getting a fairness or valuation opinion on a private equity GP-led secondaries transaction is a straightforward, albeit costly task. In credit secondaries, however, the rule change creates a cumbersome burden.
Securities and Exchange Commission, SEC, Building in Washington DC. The SEC regulates stocks and bonds and related financial activities.
A footnote in the US Securities and Exchange Commission's new rules suggests continuation funds structured as cross fund trades won't be subject to third-party fairness opinion and valuation letters.
image of rubber stamp and hand
The SEC’s vote this week that makes third-party opinions in continuation fund transactions mandatory was a practice that was already becoming a market norm.
discussion, angry, frustrated, annoyed, argue, argument
The trade group has issued guidance to address concerns over conflicts and the speed of GP-led deals.
The SEC’s aim for more standardised GP-led real estate secondaries transactions will step up a gear with the likely introduction of regulations in 2024.
The US regulator's vote this week to require greater disclosure from private fund sponsors is the tip of the upcoming regulatory iceberg.
wooden blocks showing regulation
Sponsor-initiated processes will have to be reported to the regulator within 60 days from the end of each quarter.
arrow pointing northeast
Some LPs have felt so frustrated at the way continuation fund processes have been run that they have decided not to re-up with their manager, representatives from the investor body told Secondaries Investor.
magnifying glasses
Regulators have accused funds of foisting their fiduciary duties onto outsourced firms.
GP-led secondaries question 9 icon
Decision-making can be a resource-intensive process, although it is one that LPs are becoming more familiar with.
si
si

Copyright PEI Media

Not for publication, email or dissemination