In a National Law Journal article reporting on the US Securities and Exchange Commission’s (SEC’s) recent adoption of rules that will impact the private funds industry, partner Christine Schleppegrell commented that they will require advisers to expend more resources and draft new contracts.
“Despite significant concessions from the proposed version, these new rules will impact the contractual and business arrangements between private fund sponsors and investors,” Christine said.
“Private fund advisers and investors will spend considerable time and resources navigating open interpretive issues, particularly those in the restricted activities and preferential treatment rules.”