News & Events

Partner Ryan Brizek was quoted in an Ignites article, "CEF Deregulation Will Boost Innovation. Investor Demand? Hard to Say," which discussed potential market developments from recent guidance issued by the staff of the Division of Investment Management of the Securities and Exchange Commission (SEC) that withdrew a longstanding informal staff disclosure comment that generally required interval funds and other registered closed-end funds that invested more than 15% of their assets in private equity funds to limit the investors in their public offerings to accredited investors. The article explored implications for financial product innovation and distribution as well as private fund fee structures and transparency in disclosures. Ryan explained how the new SEC staff position could increase the breadth of distribution of interval funds and other non-traded registered closed-end funds on clearing platforms for financial advisors (such as RIAs) that previously excluded such funds if they had to affirmatively confirm a purchaser’s accredited investor status. He further noted that such access could be critical for increasing demand for such products from accredited investors, even more than from the retail investors who were previously prohibited from investing in such funds.

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