News & Events

Partners Adam Aderton and Steven Grigoriou were quoted in a Regulatory Compliance Watch article examining the current regulatory focus on the private credit market and considerations for sponsors operating in this space. In discussing the cyclical nature of regulators’ focus on certain products, Adam noted, “Sometimes in these cyclical moments, regulators will also ask about diligence and underwriting on the front end. We’ve had some pretty significant changes in the market from the time of underwriting, whether that’s interest rate changes or AI’s effect on software and other industries. Such that I think those claims are also going to be quite challenging.”

Reflecting on considerations for private fund sponsors that offer products to retail investors, Steven noted, “Often these products require Exchange Act filings, whereas, for private funds that remain private, the general public won’t necessarily know what the returns are. But these products are very public, and are gaining a lot of attention in the media, so sponsors have to take into account how they reflect their brand.” Steven also went on to discuss the importance of paying attention to valuations, saying, “I always advise my clients: process, process, process, when it comes to valuations.”

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