Wed, Apr 14, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Enhanced risk management and due diligence needed on hedge funds ad rule

Wednesday, July 31, 2013

amb
Kristoffer Houlihan
Komfie Manalo, Opalesque Asia:

This coming fall, expect hedge funds, private equity funds or early-stage companies to start pitching opportunities to buy into the once 'for elite-only’ portfolios as the Securities and Exchange Commission lifted the 80-year ban on advertising by private placement offerings.

But Kristoffer Houlihan, founder and Managing Partner at independent strategy and risk advisory company Armilla Partners, warns that the lifting of the long standing ad ban could trigger a risky, black box investment culture that takes undue advantage to gullible investors.

"The new rule could evoke more interest about hedge funds and more need for evaluation. We expect more request for information about hedge funds and other private placement offerings in the coming months. People will start asking questions," Houlihan said in an interview with Opalesque.

However, the new SEC rule did not change the restrictions on hedge funds. Houlihan noted that the same rule applies that private funds can sell their products to accredited investors with at least $1m in net worth, excluding their primary residence, and those who earned more than $200,000 annual over the past two years.

This could hurt entrepreneurs and small businesses that the JOBS Act intended to protect and promote by finding new ways to fund their businesses in the first place, Houlihan warns. Fund managers must establish the qualificat......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. New Launches: Atlas Holdings closes fourth PE fund at $3.1bn, Zigg Capital nabs $225m to invest in proptech startups, Canvas Ventures raises $350m to help bring intentionality back to early-stage investing, BlackRock and Fidelity launch first green bond ETFs[more]

    Atlas Holdings closes fourth PE fund at $3.1bn From PE Insights: Atlas Holdings has held the first and final close of its fourth private equity investment fund, Atlas Capital Resources IV LP (ACR IV) at its hard cap of $3.1 billion. The latest fundraising, which began in Novembe

  2. SPACs: UK stock market to lure SPACs with rules overhaul, Nuvation Bio flounders after EcoR1 SPAC merger, Singapore Exchange may launch regulatory framework for SPACs by mid-2021, SPAC listings slow to a crawl with bankers buried in paperwork[more]

    UK stock market to lure SPACs with rules overhaul From Yahoo Finance: Britain's financial watchdog has fired the starting gun on plans to overhaul stock market rules in a bid to lure more SPACs to the London market. The Financial Conduct Authority (FCA) on Wednesday said it woul

  3. New Launches: Amundi launches Just Transition for Climate fund, Index Ventures launches $200m seed fund, China's Hosen Capital hits $800m hard cap for third US dollar fundraise, Shackleton launches fifth venture secondaries fund[more]

    Amundi launches Just Transition for Climate fund From Bloomberg: Amundi has launched a European fixed income fund that will support energy transition. The Just Transition for Climate fund is managed by Alban de Fa?, head of fixed income ESG investing, and Dany da Fonseca, credit portfo

  4. SPACs: Investors see $90bn SPAC craze fizzling in the next year, US regulator turns spotlight on rosy SPAC projections, SPACs drive March M&A record, but other infotech players are still buying, Blank-check ETFs keep coming even as SPAC fever cools down[more]

    Investors see $90bn SPAC craze fizzling in the next year From PE News: Investors overseeing almost $13tn in assets say the frenzy around Spac listings will slow over the coming 12 months, predicting a spate of high profile failures will suppress appetite for so-called blank-cheque comp

  5. PE/VC: 'Frustrated' limited partners are questioning PE-sponsored SPACs, European venture reaches all-time high in the first quarter of 2021[more]

    'Frustrated' limited partners are questioning PE-sponsored SPACs From Institutional Investor: It's hard to imagine that private equity firms would have stayed out of the booming business of special-purpose acquisition companies. But private-equity-sponsored SPACs could lead to conflicts