Defining the evolution of the private equity CCO
Evolving responsibilities and emerging regulations pose unique challenges for today’s CCOs. The Private Fund Compliance Forum dissects critical changes in the regulations governing private equity, the impact on compliance processes and provides the latest approaches for managing the firm’s compliance program.
The Forum is an established industry resource for compliance professionals to gain practical insights and best practices from leading compliance experts. With a rich history of breaking critical industry information, notably the Spreading Sunshine in Private Equity speech, private fund compliance professionals make this the one event they must attend annually.
Now entering its eleventh year, the Private Fund Compliance Forum remains an essential resource for Chief Compliance Officers and General Counsels to convene for access to crucial regulatory and compliance program updates.
Highlights from last year’s Forum included:
- Restructuring the compliance function
- An examination of SEC 2019 priorities
- Strategic approaches for enriching compliance programs
- Identifying and using the latest technology for PE compliance
- Assessing the intersection of valuation and regulation and the impact on compliance processes
- Enhancing diversity within the firm and portfolio companies
- Impact of tax reform on private fund compliance
- Reexamining the relationship between outsourcing and compliance
- Optimizing the use of technology in PE compliance
- Evolution of the valuation process and regulatory overlap
2019 Keynote speaker
Marc P. Berger
New York Regional Office
U.S. Securities and Exchange Commission
Marc P. Berger was named Director of the New York Regional Office in December 2017. The New York office has responsibility for the largest concentration of SEC-registered financial institutions, including more than 4,000 investment banks, investment advisers, broker-dealers,mutual funds, and hedge funds. Mr. Berger will sit down for an engaging conversation addressing a range of issues including the current state of private equity regulation and what compliance professionals should be addressing within their firms.
Last year's attendees included:
Access the event resources
What our attendees say about the Forum
This is the most informative of the conferences I do every year
Leerink Capital Partners
One of my go to events each year due to the timely program content and excellent panelists.
Excellent event, with all topics being highly relevant
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Digest the premier meeting of private fund compliance professionals through some key statistics.
The Private Fund Compliance Forum in 5 data points
Here is a look back at the 2019 Private Equity International’s Private Fund Compliance Forum in New York. If you missed out on the insight – we heard from the Securities and Exchange Commission’s New York regional director Marc Berger (more on that soon) – or the candid swapping of notes, then here are five takeaways for you:
1. Surviving as a team of one
Compliance teams tend to be small – more than a quarter of delegates who answered an onsite poll said they were a compliance team of one.
One CCO at the conference expressed the importance of communicating with your firm about how the role should be focused. “I went to them and said ‘here’s my 200-item to-do list and here’s the two that I’ve gotten to so far,’” the CCO said. “Is this really how you want me to be spending my time? If you want me to be the highest paid trade clearer [or] non-disclosure agreement checker in the market, that’s great, but I don’t think that’s why you brought me in here.”
2. Valuations committee: a CCO seat at the table
At most firms (86 percent, according to our delegate polls), the CCO either sits in on valuation committee meetings as an observer or as a full and active member. In a panel discussion on the topic, experts agreed that investors are asking more and more for third-party involvement when it comes to valuations because it makes them feel “more comfortable.”
3. Mock SEC exams: the only time you shouldn’t get it in writing
Mock exams are a great way for private equity firms to get ready for a potential visit from the SEC. Most firms – 75 percent, according to a delegate poll – engaged a consultant to run a mock exam process. One lawyer at the event noted that it was important to “not get the results of mock exams in writing” so as to avoid documentation issues and to keep the information as confidential as possible. This came as a surprise to 64 percent of CCOs at the conference, who did exactly that.
4. Don’t forget marketing rules
Marketing rules may not be number one on your list of compliance worries. In fact, when delegates were asked whether marketing materials were one of the SEC’s focuses during their most recent exam, half said no, and only a quarter said yes (a further quarter had not yet been examined). But ignore them at your peril, said one lawyer, noting that a common issue he finds with clients marketing materials is “inconsistency in footnotes across quarters and presentations.”
5. The importance of expense testing
Fees and expenses are the top issue picked up in exams, delegates said.
“In my past three years at the firm, [in] every single exam I worked on, at least one expense wasn’t being allocated the way that the senior management thought it was being allocated,” one private fund lawyer said. “Fees and expenses remain the number one issue.”
The lawyer went on to say it is the issue most consistently scrutinized by the SEC, as reported by pfm. More than half of respondents attending an expense-testing panel said they had gone through an SEC exam in which the regulator reviewed expense allocation. Despite this, only 29 percent of the same respondents said they test expenses regularly.
Deputy Chief Compliance Officer, Hamilton Lane
Chief Financial Officer, LLR Partners
General Counsel and Chief Compliance Officer, Providence Equity Partners
Director, New York Regional Office , U.S. Securities and Exchange Commission
Managing Director, General Counsel and Chief Compliance Officer, Tailwind Capital
General Counsel and Chief Compliance Officer, The Riverside Company
Chief Financial Officer and Chief Compliance Officer, Stellex Capital Management LP
Partner, Ropes & Gray LLP
Chief Compliance Officer, Resource Capital Funds
Partner, Kirkland & Ellis LLP
Chief Financial Officer and Chief Compliance Officer, Blue Wolf Capital Partners
Chief Financial Officer, Saw Mill Capital
Chief Compliance Officer, Altpoint Capital Partners LLC
Partner, General Counsel and Chief Compliance Officer, Clearlake Capital Group
Chief Compliance Officer, AlpInvest Partners
Vice President – Legal and Compliance, Irving Place Capital
Senior Counsel and Chief Compliance Officer, Welsh, Carson, Anderson & Stowe
Principal and Chief Compliance Officer, Stone Point Capital
General Counsel, Leonard Green & Partners
Director of Compliance, PGIM, Inc. - Prudential Capital Group
Head of Compliance, North America Private Investments & Real Estate, Bain Capital, LP
Managing Director, Hamilton Lane
Managing Director, Global Head of Tax KKR & Co. Inc.
Chief Compliance Officer and Associate General Counsel, Oak Hill Capital Partners
Member, Global Chief Compliance Officer, KKR & Co. Inc.
General Counsel and Chief Compliance Officer, Versa Capital Management, LLC
Partner, Pepper Hamilton LLP
Managing Partner, Malk Partners
General Counsel and Chief Compliance Officer, Parthenon Capital Partners
Managing Director, Deputy Chief Compliance Officer and Corporate Counsel, StepStone Group
The Forum offers a unique opportunity for organizations to raise their profile by meeting with the largest gathering of private equity marketing and communications professionals across two days of sessions.
For exclusive sponsorship packages, contact Jimmy Kurtovic at email@example.com or +1 646 795 3273.