Lawyers & Professionals

Firm Overview

Instead of trying to be everything to everybody, we’ve made a name for ourselves by delivering what our clients need most: in-depth, hands-on legal counsel throughout the financial services sector — and beyond.

Get to know us

Firm News

There’s a lot going on at Schulte — we’re wrapping up high-profile matters, welcoming talented new lawyers, speaking on issues that affect our clients, and more.

Read all about it

Pro Bono

Throughout our history, Schulte has provided comprehensive pro bono services to local and national nonprofit organizations. Today, we serve more than 50 nonprofits and work to advance a variety of social justice causes.

Learn more

Diversity, Equity and Inclusion

Inside the firm, we work hard to attract diverse, talented lawyers and encourage their career growth and advancement. And outside the office, we’re active in volunteer drives and local initiatives that support underrepresented groups.

See what we’re up to


Firm connections that last a lifetime. The Schulte Alumni Network is a lifelong community spanning roles, practices, and offices.

Learn more

Social Responsibility

We take doing “good work” seriously — whether we’re talking about our high ethical standards or the way in which we foster a positive and inclusive culture for our personnel and support local communities.

See how we work


  • New York

    • 919 Third Avenue
    • New York, NY 10022
    • United States of America
      • +1 212.756.2000 Phone
      • +1 212.593.5955 Fax
  • Washington, DC

    • 555 13th Street, NW, Suite 6W
    • Washington, DC 20004
    • United States of America
      • +1 202.729.7470 Phone
      • +1 202.730.4520 Fax
  • London

    • One Eagle Place
    • London SW1Y 6AF
    • United Kingdom
      • +44 (0) 20 7081 8000 Phone
      • +44 (0) 20 7081 8010 Fax
We’ve rebranded!
Visit our homepage to see the new brand in action.

On April 17, 2020, the SEC settled charges[1] against a registered investment adviser for distributing allegedly misleading advertising materials. From 2014 through early 2015, while marketing for a private fund, the manager utilized marketing materials that contained a track record of its principals’ investment decisions while employed by a prior firm. This track record included an investment in a private fund managed by a third party (where the principals had rights to veto certain investments for the first three years of the term), which was described as an early-stage “direct” oil and gas drilling interest.

The SEC found that the distribution of these materials violated Section 206(4) of the Advisers Act and Rule 206(4)-1, specifically noting that (i) the inclusion of the prior firm’s fund in the track record significantly increased performance, (ii) the distributed materials omitted key information about that particular investment’s third-party managed fund structure and (iii) investments in private funds managed by third parties were not consistent with the stated investment program of the private fund being marketed (i.e., “[d]irect investments in oil and gas leases and wells”). In addition, the SEC found that the registered investment adviser violated Advisers Act Rule 206(4)-7 because it did not comply with the firm’s policy prohibiting the use of false or misleading marketing materials, “including misleading depictions of investment performance . . .” The SEC imposed a censure and civil monetary penalties of $1 million.

This enforcement action should remind managers to review track records of investment performance, especially from employees’ prior firms, for accuracy, both with respect to the performance numbers themselves and the categorization of investments. Compliance should carefully consider what prior performance should, and should not be, included in a presentation (and what disclosures are necessary to make a presentation not misleading). In addition, managers should consider reviewing their policies and procedures relating to the calculation of performance and preparation of marketing materials.

This article appeared in the June 2020 edition of SRZ’s Private Funds Regulatory Update. To read the full Update, click here.

[1] See Order Instituting Administrative and Cease-and-Desist Proceedings, available here.

This communication is issued by Schulte Roth & Zabel LLP and Schulte Roth & Zabel International LLP for informational purposes only and does not constitute legal advice or establish an attorney-client relationship. In some jurisdictions, this publication may be considered attorney advertising. ©2020 Schulte Roth & Zabel LLP and Schulte Roth & Zabel International LLP.

All rights reserved. SCHULTE ROTH & ZABEL is the registered trademark of Schulte Roth & Zabel LLP.