Karpati to leave SEC for private sector

Bruce Karpati helped establish the SEC's fledgling asset management division, which focuses on alternative investment strategies, in 2010.

Bruce Karpati, the head of the US Securities and Exchange Commission’s asset management team that focuses on the private equity industry, among other things, is heading to the private sector. 

The SEC announced Karpati’s departure in a news release this week. Karpati will join Prudential Investments Monday as chief compliance officer, according to a statement from the company.

Deputy chiefs Julie Riewe and Marshall Sprung will replace Kaplan until the Commission puts in place new leadership, according to the statement.


Karpati became co-head of the asset management unit, along with Robert Kaplan, in 2010 when the team was formed. He was “instrumental” in establishing the team, according to the SEC, and a hallmark of his tenure was close coordination with other SEC divisions. Kaplan left the SEC last year to join Debevoise & Plimpton.

During his time at the SEC, Karpati oversaw around 60 cases, mostly involving hedge funds but also including enforcement action brought against Oppenheimer & Company, which was accused of inflating the value of one of its private equity funds while marketing a follow-on fund. Oppenheimer eventually settled with the SEC, paying $3 million as part of the arrangement. 

Karpati joined the SEC in 2000 as an enforcement staff attorney. He was promoted to branch chief in 2002 and assistant regional director in 2005. In 2007, Karpati founded the SEC’s hedge fund working group to combat securities fraud in the hedge fund industry. 

At Prudential, Karpati will work as chief compliance officer for the mutual fund manufacturing and distribution business of Prudential Financial, as well as performing chief compliance duties for the company’s mutual fund boards, Prudential said in a statement.