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Misallocation of Funds Investment Adviser

Eversheds Sutherland (US) LLP

SEC fines BDC investment adviser for misallocation of expenses and valuation failures

On December 3, 2018, the Securities and Exchange Commission (the SEC) entered an order (the Order) to settle charges arising out of an enforcement action against Fifth Street Management, LLC (FSM). FSM disclosed in March 2016...more

Stinson - Corporate & Securities Law Blog

SEC Charges Platinum Equity for Misallocation of Broken Deal Expenses

The SEC announced a settled action against Beverly Hills-based investment adviser, Platinum Equity Advisors, LLC, for charging three of its private equity fund clients with about $1.8 million more than it should have in...more

Cadwalader, Wickersham & Taft LLP

SEC Focus On Expense Allocation: In the Matter of KKR

On June 29, 2015, the SEC charged Kohlberg Kravis Roberts & Co. L.P. (“KKR”), an SEC-registered investment adviser, with misallocating more than $17 million in broken deal and diligence expenses to its flagship private equity...more

Dechert LLP

SEC Charges Private Equity Fund Adviser with Misallocating Expenses between Portfolio Companies

Dechert LLP on

The U.S. Securities and Exchange Commission (SEC or Commission) issued a cease and desist order on September 22, 2014 (Order) against private equity fund adviser Lincolnshire Management, Inc. (Lincolnshire). The Order alleged...more

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