On February 9, 2022, the Securities and Exchange Commission (“SEC”) proposed new rules under the Investment Advisers Act of 1940 regarding the regulation of private funds. A private fund is an investment company, usually a limited partnership, that does not solicit investments from the general public and meets one of the exemptions from being regulated under the Investment Company Act of 1940. The new rules were designed to provide “enhanced information about costs, performance, and preferential treatment,” and to “help an investor better decide whether to invest or to remain invested in a particular private fund, how to invest other assets in the investor’s portfolio, and whether to invest in private funds managed by the adviser or its related persons in the future.” READ MORE