Posts

Support for Private Placement Firms

Real Fear of SEC Action for Private Equity Firms

A 12 month analysis of FINRA NMA’s (New member Applications) from July 2016 shows 55% of new BD firms admitted identify as private placement only, while nearly the same number of PP only firms withdrew.

Many in this fast growing cross-section of BD formations are running for cover under rabid disruption by the SEC. The controversy is over SEC’s Blackstreet Capital Management decision June 2016 that left private equity dealers trying to determine how to align with FINRA; should they get in, stay in, or get out.  

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Hedge Fund Due Diligence

The last few weeks have witnessed a storm of financial media reports surrounding the departure of Bill Gross from Pimco. However, what was most noticeably absent in the reports was the decision of Pimco to withdraw its investments in hedge funds.  This decision to withdraw Pimco’s Investments in hedge funds is noteworthy given the level of attention that Pimco can afford in monitoring its investment in such pooled investment vehicles which underscores the importance in continued due diligence in such investments.   Read more