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Purpose

– The purpose of this paper is to explain various regulatory risks and problem areas facing private equity firms and to recommend compliance policies and procedures to minimize those risks.

Design/methodology/approach

– The paper explains several problem areas that have been the subject of regulatory investigations, including fees and expenses, antitrust, the Foreign Corrupt Practices Act (FCPA), fundraising, and insider trading.

Findings

– Regulators and prosecutors are increasingly focusing on private equity firms.

Practical implications

– Many private equity advisers met their registration deadlines but have not dedicated meaningful attention to customizing and implementing compliance policies and procedures, often purchased from non-law firm compliance consultants. Now is the time to take the next step.

Originality/value

– Practical guidance from experienced financial services lawyers.

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