Joel Wattenbarger Discusses SEC Exam Priorities in The Wall Street Journal

The Securities and Exchange Commission (SEC) announced examination priorities for fiscal year 2024, sharing that the agency would scrutinize private-fund fee arrangements and fund marketing.

Asset management partner Joel Wattenbarger told The Wall Street Journal that “there is an intense focus at the moment on what exactly your fund documents say about how you calculate management fees after the commitment period, how you account for write-downs and whether your practices match what fund documents require.”

The SEC also appears to be focusing more than in the past on how firms market their funds, Joel noted. The agency’s marketing rule, which went into effect late last year, established new guidelines about how investment firms can advertise fund performance, and in particular require private-equity managers to show performance net of fees.