Alon P. Kapen Quoted in S&P Global: Private equity industry weighs consequences of SEC’s tighter grip

October 02, 2023

A sweeping set of rules for private fund advisers adopted by the SEC in August has underscored the agency’s recent turn to a more hands-on regulatory approach for private equity and has sparked industry concern over the cost of compliance. Alon Y. Kapen spoke with S&P Global regarding what affect the rules might have:

That may seem like a subtle shift in perspective by the SEC, but it is an “earthquake” for private markets, said Farrell Fritz attorney Alon Kapen. The change prompted a lawsuit by industry trade groups that argued the agency overstepped its authority, crafting rules that will erode returns and reduce competition.

“If the SEC is trying to protect the investors here, an unintended consequence is that they are sticking it to them, because the additional compliance costs are going to be passed down,” Kapen said.

 

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Private equity industry weighs consequences of SEC’s tighter grip | S&P Global Market Intelligence (spglobal.com)