Insights
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Corporate and Business Law attorneys Greg Kahn and Eliza Sporn Fromberg authored an article titled "The Private Equity Fund Managers' Dilemma: Register as Broker-Dealers or (Potentially) Cease Collecting Fees for 'Investment Banking Activities'?" for the May 23 edition of VC Experts. They discuss comments by the chief counsel of the SEC's Division of Trading and Markets, which suggest "that private fund managers' receipt of transaction fees in connection with the purchase, sale or recapitalization of a portfolio company, if accompanied by a securities issuance, may trigger broker-dealer status questions." Greg and Eliza write that the effect could be greatest for "private equity funds, particularly small funds, and independent sponsors" and urge early review of the issues.
The full article can be found here.
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This website may use cookies, pixel tags and other passive tracking technologies, including Google Analytics, to improve functionality and performance. For more information, see our Privacy Policy. By using our website, you are consenting to our use of these tracking technologies. You can alter the configuration of your browser to refuse to accept cookies, but if you do so, it is possible that some areas of web sites that use cookies will not function properly when you view them. To learn more about how to delete and manage cookies, refer to the support instructions for each browser (e.g., see AllAboutCookies.org). You may locate Google Analytics' currently available opt-outs for the web here.