Schulte Roth & Zabel partner Craig Stein was recently quoted in Tom Lemmon's GlobalCapital article, “Relief for US CLOs after unexpected exemption,” in which he discussed CLOs' exemption from the SEC's new Private Fund Advisers Rules.
According to Craig, “We were hopeful of getting some relief. But the entire exemption was unexpected and the CLO market is extremely pleased with the outcome.”
The exemption for CLOs occurred because existing disclosures for those, such as providing monthly financial reports, were deemed more than adequate
Craig continued, “The industry groups did an excellent job at educating the SEC as to why CLOs are different from private investment funds. And, that in many cases, CLOs actually provide more information or better information than what the SEC was requiring on the fund side.”
Read the article (subscription required).