WASHINGTON, D.C. — On Monday, the American Investment Council (AIC) submitted a letter of comment to the Securities and Exchange Commission (SEC) warning against modifications suggested in a letter submitted to the SEC earlier this month by the Institutional Limited Partners Association (ILPA). ILPA proposed unnecessary changes to the longstanding robust regulatory framework private equity fund sponsors are already subject to under existing law.
“Private equity consistently ranks as the highest-performing asset class for pension funds and enjoys productive working relationships with its limited partners,” said AIC Chief Operating Officer and General Counsel Jason Mulvihill. “Modifying the long-standing fiduciary duty standard is unnecessary, would create confusion, and could disrupt a mutually beneficial arrangement.”
ILPA’s recommendations, if adopted, would limit the ability of both private equity fund sponsors and investors to negotiate customized provisions that reflect the characteristics of investing in a private equity fund.
The AIC looks forward to continuing to engage with the SEC as it evaluates its proposed guidance on the standard of conduct for investment advisers.
Read the full letter here.