There were several important developments impacting private investment funds in 2020.  The SEC continued to prioritize this area of the capital markets, and it issued important rules and guidance impacting private funds and investment advisers.  There also were two important court rulings, one by the United States Supreme Court and one by the Delaware Supreme Court.  This Article summarizes the most important developments in the private fund space – in chronological order.

Continue Reading Private Investment Funds: Major Developments from 2020

The United States Securities and Exchange Commission has increased its focus in recent years on investment advisers who manage private funds. The Division of Enforcement of the SEC reported that in fiscal year 2019, 36% of all civil and stand-alone administrative proceedings were brought against investment advisers and investment companies.

Continue Reading Private Funds: SEC Examination and Enforcement Priorities

The Supreme Court’s June 22 decision in Liu v. Securities and Exchange Commission addressed important issues about the SEC’s authority to obtain “disgorgement” and the meaning of the term.  This article summarizes the Court’s ruling in Liu, including the Court’s characterization of the term disgorgement and limitations on the SEC’s ability to obtain the remedy.  It then identifies practical implications of the decision in the context of SEC enforcement, as well as potential insurance coverage implications of the decision.

Continue Reading Liu v. SEC: What Is “Disgorgement”?