Jason Brown Discusses Private Funds Rules in Private Equity International

Private fund managers are preparing for the Securities and Exchange Commission’s regulations. Co-head of the private funds regulatory group Jason Brown spoke with Private Equity International about the specifics.

“Firms have to deliver quarterly statements within 45 days of the first three fiscal quarters. And then they have 90 days after the fiscal year-end,” Jason said. “Finance groups at a number of firms are concerned that that’s a very tight turnaround, especially since valuations may not be done by then.”

On the subject of how GPs will categorize fees and expenses in quarterly reports, Jason said “firms are going to have to recategorize a lot of fees and expenses in a new form for the SEC. They may already be sharing a lot of this information with LPs already, but grouping is no longer allowed, so everything needs to be placed in individual categories, creating a number of new fee and expense streams to track over time.”