FrontLine’s perspective on unfolding regulatory environment featured (Buyouts Insider)

As the private equity industry has continued to evolve, so have the calls from institutional investors for more transparency on the fees charged by these firms. Now the SEC seems poised to seek more extensive disclosures around direct and indirect fees and carried interest. FrontLine’s consultant team led by President Amy Lynch sees a primary concern among regulators to be whether certain investors are provided special treatment with fees and other terms in order for private equity managers to have access to their investment dollars. The SEC would also question whether these managers are then showing favoritism among investors based on different terms and conditions, as well as creating conflicts of interest situations. With continuous messaging on regulation from SEC Chairman Gary Gensler, and rulemaking almost certainly underway, Ms. Lynch and her team recommend that firms tighten up language in their Form ADVs and other disclosure documents. See Buyouts Insider (subscription required), “No escape from red tape: regulation is coming”