Funds with less to fear from SEC, now fall under new rules (FundFire)

Private fund managers with funds currently exempt from certain compliance requirements could have exposure to new rules ahead. This includes private real estate funds, which would likely have new compliance obligations under several SEC rules recently adopted, depending on their structure. Amy Lynch, FrontLine’s Founder and President, explains how the private fund disclosure rules would impose new reporting requirements on real estate managers. With the lead comments, she states that the impact on private real estate funds results from the granularity of information that will need to be provided to the SEC under the rules. Ms. Lynch adds that these managers would need to step up their recordkeeping and monitoring of various activities within their funds. Other facets of the new private fund rules – with its five components – are raising wide-ranging concerns for many private fund managers, which would require them to expand compliance outsourcing and bolster back-office operations. Ms. Lynch further states that other rules proposed on custody amendments and ESG reporting would also affect some private funds, including real estate funds. See FundFire (subscription required), “Real Estate Managers Grapple with New SEC Rules”