1. You are here:
  2. Homepage
  3. Resource library search
  4. GP-Led Secondaries: New SEC Rules Impact on Valuations and Conflicts of Interest
Memo
26 Jan 2024

GP-Led Secondaries: New SEC Rules Impact on Valuations and Conflicts of Interest

The Securities and Exchange Commission (SEC) has introduced new rules to address conflicts of interest when advisers offer investors the choice between selling or exchanging their interests in a private fund for interests in another vehicle managed by the adviser or related parties. In this piece, we explore the impacts of these new rules for investors and managers and highlight considerations for effective implementation.

The new rule will reduce the potential for conflicts of interest, but we should acknowledge that concerns surrounding valuation and conflicts of interest will remain with regards to the valuation of assets in the normal course of business – such as for striking NAVs which are then used to calculate fees owed to a GP.

The SBAI’s standards on valuation and conflicts of interest seek to address some of the concerns raised by regulatory authorities and aims to create a framework for institutional investors and investment managers to ensure trust and integrity between stakeholders, for the ultimate benefit of our industry.

GP-Led Secondaries Impact on Valuations and Conflicts of Interest 109 KB
Download

Related topics

Conflicts of Interest Regulation Disclosure Valuation Governance United States
Return to listing

You may also be interested in

Responsible Investment.jpg
30 Jan 2024

Principles for GHG-Emission Accounting in Alternative Strategies

The SBAI expands on existing frameworks for GHG-emission accounting to develop a methodology that allows for the incorporation of derivatives and short positions. The framework outlines the case for inclusion from the perspective of measurement of GHG-emission risk exposure and sustainability outcomes (impact).

Memo
Regulatory engagement.jpg
26 Jan 2024

SBAI Engages with the SEC

Over the last months, we have continued to engage and meet with the US SEC on a range of proposed rules – raising specific concerns about the unintended consequences of the Safeguarding Advisory Client Assets Rule and the Predictive Analytics Rule.

Article