Certain private funds to face larger hurdles with new regulations (Buyouts Insider)

There is always the risk that a private fund manager will need to comply with future rules after it registers with the SEC. Now the SEC has floated several rule proposals toward implementing new regulations that all registered private funds must grapple with, regardless of size. Smaller funds faced with increased regulatory costs may face the greatest challenges to asset growth while start-ups, women-owned and diverse-owned funds may also have their success impeded. Amy Lynch, FrontLine’s Founder and President, explains that certain components of the proposed rules would raise compliance and legal costs and put small fund managers under pressure with their fees, where they may be less able to lower them to be competitive and attract investors. See Buyouts Insider (subscription required), “Proposed SEC rules could hurt diverse-owned firms”