Broker-dealer Issues for Private Equity Firms are Back, Private Investment Funds Partner Outlines in FundFire and Private Funds Management

In The News
June 21, 2016

The SEC’s recent enforcement action against Blackstreet Capital Management for receiving brokerage fees is a serious development for the industry, stated private investment funds partner Jason Brown (Boston) in FundFire and Private Funds Management. Though “a prominent private equity topic several years ago,” Blackstreet’s subsequent settlement with the Commission “brought back issues that had been dormant for a long period of time,” stated Mr. Brown. Though other violations were cited, the headline issue was broker-dealer activity by an unregistered firm. “The enforcement staff clearly wanted to highlight it,” stated Mr. Brown, also noting it was early days regarding the issue.