The SEC adopted final rules for private fund advisers (Rules) in 2023 that introduce significant reporting and disclosure requirements on private fund managers. Since the Rules were issued, everyone has been focused on the details of what steps managers will need to take to become compliant. It can be helpful, however, to step back and consider some of the macro-level ramifications and takeaways from the Rules, including what they say about the direction of the industry and future avenues of SEC scrutiny. To help sponsors gain a broad perspective about the Rules alongside other coverage that delves into key details, the Private Equity Law Report interviewed a number of experts who shared insights and high-level observations about the potential impact of the Rules going forward. This article summarizes relevant feedback from those conversations, including the probable growth in the use of service providers, shifting of expenses to LPs, potential pathway for retailization and likely manifestation of SEC exam scrutiny. For detailed examination of the Rules, see our three-part series: “Overview of the New Rules and Analysis of the Restricted Activity Requirements
” (Sep. 21, 2023); “Details and Obstacles of the Quarterly Reporting Requirements
” (Oct. 5, 2023); and “Issues to Monitor in Preferential Treatment, Adviser-Led Transactions and Annual Audit Rules
” (Oct. 19, 2023).