Month: September 2026
Primer: Capital Calls, Defaults and Subscription Credit Facilities in Private Equity and Venture Capital Funds
We are often asked how capital calls work in private equity and venture capital funds. The question sounds administrative, but the answer goes to the heart of the private fund structure. Private equity and venture capital funds are typically not funded all at once. Instead, investors make capital commitments at […]
Primer: What Expenses Can a Private Equity or Venture Capital Fund Pay?
We are often asked what expenses can properly be paid by a private equity or venture capital fund. The question sounds like accounting. In practice, it is much more than that. Expense provisions define the economic boundary between the manager’s business and the fund’s business. The manager receives a management […]
SEC Proposes Rescinding Investment Adviser Pay-to-Play Rule
The proposal would eliminate Rule 206(4)-5’s two-year compensation ban, covered associate framework and third-party solicitor restrictions. Actual pay-to-play conduct would remain a potential antifraud and fiduciary-duty violation. On September 3, 2026, the US Securities and Exchange Commission (SEC) proposed rescinding Rule 206(4)-5 under the Investment Advisers Act of 1940 (Advisers […]
Primer: Management Fees in Private Equity and Venture Capital Funds
We are often asked about the “market” rate for management fees in actively managed private equity and venture capital funds. That question sounds simple, but it is usually not just a question about the headline percentage rate. This primer discusses mainstream private equity and venture capital funds, so to speak. […]
The Private Fund Issues Beneath Recent SEC Enforcement Cases
Recent enforcement actions brought by the Securities and Exchange Commission (SEC) involving private funds highlight more than the misconduct alleged in the complaints and settlement orders.[1] They also surface a variety of regulatory issues that can be easy to miss amid the headlines. Tucked beneath allegations of hidden markups and […]