Schulte Co-Managing Partner Marc Elovitz quoted in Financial Times 

Schulte Roth & Zabel co-managing partner Marc Elovitz was quoted in a Financial Times article by Brooke Masters and Stefania Palma, discussing the SEC’s proposed private funds rule, which would be one of the most sweeping regulatory reforms on private equity, real estate and hedge funds in history.

The proposed rules would require detailed quarterly reporting on performance, prohibit side deals that give different terms to some investors and limit what expenses private managers can pass on to their clients, among other changes.

If the rules are passed, many contracts with investors would have to be renegotiated, despite being decades old.

Marc noted that the overseas fund industry would be affected as well, saying “Many London-based fund managers who have US investors are going to be subject to these rigid US rules. It could cut US investors off from a lot of these funds.”

Read the article (subscription required).