Alert April 30, 2013

Goodwin Procter Alert: Senior SEC Lawyer Remarks Indicate Continued Focus on Private Fund Adviser Activities and Broker-Dealer Registration Issues

Goodwin Procter’s Private Investment Funds Practice and Hedge Funds Practice issued a Client Alert that discusses a recent speech in which the Chief Counsel of the SEC’s Division of Trading and Markets expressed concern about the potential implications from a broker-dealer registration perspective of: (i) the use and compensation of employees of private fund advisers or managers to market interests in the funds that they advise or manage, and (ii) the receipt of compensation from portfolio companies by advisers or managers of private investment funds for “investment banking” or other activities relating to securities transactions.