Understanding PE Fee Reporting Standardization, Areas of Weakness and Potential for Abuse

In 2014, the Securities and Exchange Commission director explained in what is now oft called the sunshine speech that when fees and expenses were examined, they identified what the SEC believed to be “violations of law or material weaknesses in controls over 50% of the time.”[1] Private equity investment fees and costs have persisted in the industry headlines since that time but what are the facts and how what we have learned from the examination findings impacts the role of the due diligence professional today? Understanding the push towards fee reporting standardization as well as the areas of weakness and potential for fees and expense abuse will better prepare you for the future. This webinar will discuss the types of deficiencies that were identified, the trends in LPA negotiations today as a result and how fee reporting standardization such as the Institutional Limited Partners Association (ILPA) fee template may play a part. Private Equity Due Diligence Learning Objectives:

• Understanding of the different examples of deficiencies raised by the SEC
• How this knowledge is shaping LPA terms today
• What are the aims of the ILPA fee template