This week, the SEC voted to approve a new set of rules and amendments to the Investment Advisers Act of 1940. The rules will have an impact on various aspects of the private funds industry.
Asset management partner Joel Wattenbarger told PitchBook that, “the new rules will bring more transparency into private fund negotiations, giving investors a clearer sense of what other LPs have negotiated for in the past.”
"It will absolutely change the balance of power around side letter negotiations," Joel said. Despite the exceptions, Joel shared that the new rules around preferential treatment could be burdensome to investors, both in interpretation and application.
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