Coming Soon: Increased Fund Restructuring in 2020 COVID-19 will significantly accelerate the restructuring of private funds through asset transfers from existing funds to related-party funds or affiliate entities. Such fund transfers have significant valuation and fairness issues that should be considered by GPs, LPs, and their advisors. The timing of…

On January 8, 2020, the Cayman Islands Government published the Private Funds Law, 2020 (the “Law”).1 The Law was approved by the Cayman Islands Government and enacted into law on February 7, 2020. The Law introduces, among other changes, new standards for the valuation of a private fund’s assets. According…

In December 2019, The Wall Street Journal published an article outlining tougher valuation standards for Private Equity funds. The article titled, Tougher Valuation Standards Raise the Bar for Managers and Investors, discusses the following: The SEC views valuation as the responsibility of the fund; Heightened scrutiny has prompted more funds…

SEC Actions - Fund Investment "Mispricing" and "Mismarking" Overview: The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) has named valuation practices as one of its areas of focus in both investment advisor and investment company examinations. Best practices and procedures that can help meet greater SEC regulation and scrutiny…

When venture capitalist Aileen Lee coined the term “unicorn” in the fall of 2013 to describe a VC-backed company valued at $1 billion or more, it was a fitting description of an exceptionally rare phenomenon, with around 40 companies in the world holding such title. While unicorn status is still…