Private Investment Funds Attorneys Co-Author HFM Investor Relations Article on IR Best Practices Regarding California’s New Fee Disclosure Law
On Sept. 14, 2016, California Governor Jerry Brown signed into law a bill intended to provide transparency with respect to fees and expenses paid by California public pension or retirement systems (PPPs) to private equity funds, venture funds, hedge funds and absolute return funds in which they invest. The law, which becomes effective on Jan. 1, 2017, will apply to all new contracts, including subscription agreements, between a PPP and a private fund entered into after that time. In the November edition of HFM Investor Relations, private investment funds partner Raj Marphatia (Silicon Valley) and counsel Catherine Skulan (San Francisco) discuss best practices for hedge fund investor relations personnel (IR) who will need to familiarize themselves with the information they will likely be asked to provide to PPP clients. In the feature, Mr. Marphatia and Ms. Skulan provide an overview of the new disclosure requirements, the purpose of the legislation, “Dos and Don’ts” for hedge fund IRs, and what they need to consider in terms of the practical application of the law to the fund, manager and related parties.