In a recent Bloomberg Law article by Matthew Bultman titled “SEC’s ‘Hammer’ Approach to Custody Revamp Worries Money Managers,” Schulte Roth & Zabel partner Christopher Avellaneda discussed the SEC's proposal to expand its custody rule to include all types of client assets held in advisory accounts, including real estate, artwork, jewelry and digital currencies.
While traditional hedge funds may not be involved with these types of assets, many private funds have diversified their strategies, leading to real estate funds, art funds and more.
Chris explained, “[t]he private capital industry is very large and firm funds can invest in a variety of assets. One of the main developments in the past several years in the private funds industry is how diverse it has become.”
Read the article here.