Major overhaul from SEC coming for Major Funds

Major overhauls coming from the SEC to private equity and hedge funds. My fellow fund managers, check this out. Now, of course, Liz Warren is pushing for this. She says they need increased transparency, more information, useful data on abusive and conflictive practices from Liz Warren, okay? Additionally, she points to that the private funds market has gone higher now than commercial banks as far as total assets, which is pretty crazy, the private funds world. Now, the actual proposed changes aren't that crazy though. They just want to make sure that they have quarterly statements and annual audits for all funds, which by the way, we teach people all to do in Fund Launch. And then they want, prohibit from giving some investors more favorable terms than others. So a lot of funds do a thing called side letters. Side letters allow, if you bring us, you know, $25 million, instead of charging a 2% fee, we'll charge you a 1% fee. If you bring us X number of things, they do these side deals with certain investors and they want transparency at least to know all the different side letters. And by the way, there are typically dozens if not hundreds of side letters that are done in a big, huge multi-billion dollar fund because every investor wants different terms when they come into the fund. Pretty interesting. A lot of big funds are pushing against this. We'll see what happens.