Private Equity Management Fees and Expenses: Avoiding Investor Claims and SEC Enforcement Actions
Lessons From Recent Claims and Penalties; Procedures and Disclosures to Improve Investor Confidence
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will instruct counsel for private equity (PE) fund managers on the disclosure issues and conflicts of interest associated with fund fees and expense allocations. The panel will discuss recent SEC actions, and best practices in administration and reporting that will pass muster with investors and the SEC.
Outline
- Overview of SEC oversight and authority with respect to private equity funds
- Notable SEC enforcement actions on undisclosed fees and expenses
- Payments to consultants
- Shifting expenses during fund’s life
- Characterization of expenses
- Hidden fees
- Investor due diligence
- Best practices in formulating and disclosing PE management fees and expenses
Benefits
The panel will review these and other key issues:
- What are the stated priorities of the SEC in examining fund manger’s fees and expenses?
- What particular fee and expense practices has the SEC identified as deficient with respect to disclosure to investors?
- What due diligence steps should investors take in light of the SEC audit findings?
- What steps should funds take to review fee and expense practices to ensure investor confidence?
Faculty

Jason E. Brown
Partner
Ropes & Gray
Mr. Brown has extensive experience representing investment advisers to private equity funds, real estate funds, hedge... | Read More
Mr. Brown has extensive experience representing investment advisers to private equity funds, real estate funds, hedge funds, separate accounts and commodity pools. He also focuses on the representation of other investment management clients, including open- and closed-end mutual funds and their directors.
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M. Alexander (Alec) Koch
Partner
King & Spalding
Mr. Koch is a Partner in the Special Matters & Government Investigations practice group, resident in the... | Read More
Mr. Koch is a Partner in the Special Matters & Government Investigations practice group, resident in the Washington, D.C. office. From 2002 to 2016, he served as a Senior Counsel, Branch Chief, and Assistant Director in the Securities and Exchange Commission’s Division of Enforcement. During his time at the SEC, he supervised, conducted, and litigated investigations and enforcement actions relating to all areas of the SEC’s enforcement program, including matters involving broker-dealers, credit rating agencies, investment advisers, insider trading, public company accounting and disclosure, the Foreign Corrupt Practices Act, offering fraud, and microcap fraud. Prior to his departure from the SEC, he was a member of the Enforcement Division’s Broker-Dealer Task Force Steering Committee, which is responsible for developing and overseeing investigative initiatives regarding broker-dealers.
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