The SEC is reviewing certain private equity firms’ records and communications related to their Silicon Valley Bank (SVB) accounts that occurred just prior to the bank’s collapse. The focus appears to be on how private equity firms moved deposits that included client funds out of SVB at that time. FrontLine’s Founder and President Amy Lynch is exclusively quoted and points out that the SEC’s initial interest in gathering information is to better understand the impact of private equity transactions on the banking system. The regulator’s inquiries are also part of a larger effort to more heavily scrutinize private equity’s fee structures, as well as requiring more disclosures and transparency from the industry. See Bloomberg, “SEC Queries Private Equity Firms That Yanked Cash as SVB Failed” Also see Pensions & Investments, “SEC queries private equity firms that pulled cash as Silicon Valley Bank failed”
SEC probes private equity’s handling of client funds (Bloomberg)
FrontLine Compliance
