PE Fund Adviser Sanctioned by SEC for Fee Calculation Errors – Ordered to Disgorge Fees and Pay Fine, Totaling Nearly $1.2 Million
By EsqSocial Corporation 30/10/20
On October 22, 2020, the SEC entered an order against a private equity fund adviser (that is also an exempt reporting adviser) for failing to accurately discount management fees as described in a managed fund’s limited partnership agreement (“LPA”). The firm was ordered to disgorge $1,026,642.02 ($901,760.91 before interest) of fees assessed between January 1, 2016 and October 1, 2019 (“Relevant Period”), and to pay a fine of $175,000 for violations of Section 206(2) and 206(4) of the Advisers...
By: Kilpatrick Townsend & Stockton LLP