Thank you so much for attending Dorsey's Private Funds Symposium 2018 on September 26, 2018. The full-day event brought together leading industry participants to discuss trendy topics in private funds.
Top 10 Takeaways
- Capital Raising – Investors are seeking out unique strategies and are more open to new ideas if explained properly.
- Investor Relations – Managing your social media footprint is very important. Investors want to trust and like the fund manager.
- Offshore Funds – New regulation by both U.S. and offshore authorities is a major trend impacting off-shore fund managers. FATCA, GDPR, CRS and new Cayman AML requirements are prime examples. Managers must consider whether they have the resources to meet compliance requirements in-house, or should outsource to third-party service providers.
- SEC Private Fund Manager Exams – More than half of RIAs opt to conduct a mock exam to prepare for the real deal! If you haven’t been examined recently, be prepared as the SEC is using data analytics to review Forms PF and ADV (including searching for certain buzz words) to automatically calculate a risk weighting for exam selection. Even exempt reporting advisers are being examined under certain circumstances.
- Private Fund Regulation – Review all marketing material for compliance with the Investment Advisers Act! While we are expecting some regulatory changes to the Advertising Rule in Q1 2019, the SEC is laser focused on advertisement deficiencies, especially with respect to performance advertising.
- Information Security – Cybersecurity is no longer limited to U.S. regulation from the states, the SEC and the Federal Trade Commission, but is now impacted by the new regulatory regime recently instituted by the European Union -- the General Data Protection Regulation commonly referred to as GDPR. Any firm that has any European clients must build its data compliance program around these new European requirements. In addition, in 2018 California has enacted the Consumer Privacy Act that incorporates and builds upon the requirements of GPDR. Any firm with California clients or which maintains data on any California residents. Is governed by this new law.
- Lower Middle Market Capital – Conduct thorough due diligence and have proactive engagement when providing capital to independent sponsors, founders and owners.
- Investor’s Perspective – Because so much money is flowing into larger and larger private funds, there is heightened focus on emerging managers who may provide better returns than the established managers.
- Investors’ Due Diligence – When investing in first time funds, make sure that the principals are not first time investors.
- Market Outlook – Hedge fund industry is hedging for a possible recession in 2020.
See below for the PFS 2018 materials:
Practical Compliance Considerations for Cross Border Marketing
Tax Law Changes Compel Amendments to Investment Fund Agreements
Digital Assets a Focus Point for Regulators
Recent Enforcement Provides Guidance on Internal Controls and Disclosure for Quant Managers
How to Make the RIGHT First Impression
Content Rules Create Customer Connections, Deliver Engagement and Drive Business
Eaton Partner’s Statistics on Capital Raising
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We would like to express our appreciation for our panelists who helped make this year a success.