Regulation

The Securities and Exchange Commission has conducted examinations of managers focused solely on their ESG policies and procedures, says one person with knowledge of an exam.

Energy Innovation Capital Management of Southern California overcharged on management fees, says the Securities & Exchange Commission.

The effect of more careful antitrust reviews will likely cascade through the investment chain and affect valuations and willingness to do deals.

As is usually the case, increased rules mean higher compliance costs for those advisers who fall under regulation. For the biggest firms in the industry, those costs can be handled, but for smaller shops, and especially emerging managers, those costs could prove harmful.

Insurers and other industry insiders say the SEC’s proposed indemnification rule, combined with other potential regulations outlined in the agency’s February announcement, will impact this corner of the industry.

Sequoia Capital India is right to make corporate governance a top priority. All VCs need to make "fiduciary" responsibility a regular part of their conversations.

"I’m not sure we need regulation to help facilitate more capital going to unicorns and other large private companies – they seem to be doing fine on their own,” said SEC commissioner Caroline Crenshaw.

“The rules regarding special treatment for some LPs over others could be more eloquently crafted and should rely more on disclosure than prohibition,” says Maryland State Retirement and Pension System CIO Andrew Palmer.

If legacy VC processes are already straining in a high-pressure environment, imagine the added friction and risks that an increase in reporting requirements might impose on firms’ already overstretched resources, writes Richard Change, co-founder and managing partner of PFA Solutions.