Publication

"SEC Enforcement Heightens Concern Over Broker-Dealer Registration For Private Equity Firms"

The Securities and Exchange Commission (“SEC”) recently announced it had settled charges for alleged unregistered brokerage activity and other alleged securities law violations with private equity fund advisory firm Blackstreet Capital Management (“BCM”). 

This Stroock Special Bulletin provides an overview of the enforcement action, in which a private equity advisor was alleged to have improperly acted as an unregistered broker-dealer after earning a success fee on portfolio transactions that BCM brokered in-house, and discusses the implications of the settlement for sponsors or managers who expect to receive a deal fee for portfolio transactions.
 

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