In 2015, Lamplighter transitioned from an LP portal that was not scalable and whose customer service was lackluster. Partnering with Dynamo Software has helped us grow our client base faster and has improved both the end-user (LP) experience, as well as that of our team who manages the LP portal. The attached case study highlights how our partnership with Dynamo has benefitted the business and our clients.
by William R. McLucas and Douglas J. Davison, WilmerHale LLPHarvard Law School Forum on Corporate Governance and Financial Regulation
Year in Review:
“The SEC brought the first action against a private equity fund for acting as an unregistered broker.”
Though there are vacancies in the SEC, and positive indicators from legislators surrounding regulatory reform, the SEC has indicated that it is currently business as usual in regards to investigations and compliance.
COLUMBUS—Representative Derek Merrin (R-Monclova Township) has introduced legislation to repeal the Ohio Financial Institutions Tax (FIT) on Small Business Investment Companies (SBICs). The FIT became effective in Fiscal Year 2014 on financial institutions that do business in Ohio as a replacement for the corporate franchise tax.
“Our tax code has misclassified SBICs as financial institutions creating an unfair tax liability, which is discouraging capital investment into Ohio’s small businesses,” said Representative Merrin.
by Marianne SkoczekUC Davis Graduate School of Management
PlayPatch, maker of a wearable, natural alternative to birth control pills, took the $20,000 first prize and won the $2,500 People’s Choice award in the 16th annual UC Davis Big Bang! Business Competition on Thursday, May 26. The first prize includes $10,000 cash and $10,000 in in-kind services from Davis Roots, a local startup incubator with ties to both the university and the city of Davis.
Five finalists—out of 42 teams in this year’s competition—pitched their ventures to the award ceremony audience before prizes were announced.
Private equity fund managers and investors view data and digital solutions as the keys to surviving the forces of disruption sweeping through the private equity industry. Increasing regulatory demands, put in place after the financial crisis, are challenging private equity funds to redesign their operating models to focus on controlling costs and to improve operational efficiency.
Five years have passed since the imposition of new requirements for Exempt Reporting Advisers under the Dodd-Frank Act. At the time the rules were enacted, they were controversial in that the burden imposed on foreign Exempt Reporting Advisers was substantially similar to that of Registered Investment Advisers. Even with the passage of time, they have become no less controversial or cumbersome. Because these regulations are not widely understood, especially by newly formed foreign Exempt Reporting Advisers, we revisit these rules below.
Exemption for Foreign Advisers
Typically, in a regulatory setting, the word “exempt” means free from obligation. But when the Securities and Exchange Commission uses the term with respect to “exempt reporting advisers,” “exempt” means, ironically, that the entity in question has an obligation to report. This new designation came about as a result of Dodd-Frank requirements promulgated in 2011, which created a class of foreign advisers that were exempted from the need to register with the SEC, but are still subject to reporting requirements, including books and records, and other requirements, and to SEC examinations. This article focuses on two types of foreign Exempt Reporting Advisers: Exempt Reporting Advisers with no U.S. presence and Exempt Reporting Advisers with a U.S. presence. Neither is, unfortunately, truly exempt.
While not quite time to sing Auld Lang Syne, 2015 has proven to be an active year for private equity. But the activity has not been limited to the record volumes in exits and consistent positive trends in fundraising – the ever-evolving legal and regulatory overlay has also kept lawyers and CCOs on their toes. Here are five things to keep in mind as we speed towards the New Year.
Private equity fund administrators are seeing more business from midsize institutional firms.
Along with the major banks like State Street Corp. (STT), Northern Trust Corp., BNP Paribas and Bank of New York Mellon (BK) Corp. (BK) that offer private equity administration services, new independent firms have joined the fray. Those include Broadscope Fund Administrators LLC, Gen II Fund Services LLC and LeverPoint Management LLC.
“I get the sense that a larger percentage of private equity firms are outsourcing” their back-office functions, with industry growth “similar to the growth of hedge fund administrators immediately after the financial crisis,” said Peter Laurelli, vice president and head of research at eVestment LLC, New York.