SEC Risk Alert re: Private Fund Compliance

WASHINGTON, D.C. (January 28, 2022) – The Securities and Exchange Commission’s (SEC) Division of Examinations has released a “risk alert” regarding observations the SEC has made about compliance practices by private funds. The alert generally describes instances where the SEC has observed private funds failing to follow certain provisions included in limited partnership agreements, providing potentially misleading information about performance track record, and failures when conducting due diligence into underlying investments. This alert is a follow-on from a June 2020 risk alert the SEC issued on private funds. It is worth reviewing as it covers a number of areas and potential issues to consider for compliance. This is part and parcel of the SEC’s ongoing review and regulatory agenda related to private funds.


 About the Small Business Investor Alliance (SBIA)

The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 60 years. For more information, visit or call (202) 628-5055.

2022-03-15T12:23:34+00:00 January 28th, 2022|News|