Yearly Archives: 2016

Surveys conducted in the immediate aftermath of the enactment of Title IV of the Dodd-Frank Act suggested that private fund advisers successfully addressed compliance demands associated with the Dodd-Frank Act and absorbed the increased compliance costs of the registration and disclosure rules relatively quickly after registration. Refuting industry concerns over the effects of Title IV of the Dodd-Frank Act on the private fund industry, the Author showed in a survey conducted in 2012 that the private fund industry adjusted well to the regulatory landscape post Dodd-Frank. For example, the 2012 survey found that private fund investors’ rate of return was not adversely impacted by the registration and disclosure requirements. While private fund adviser firms that planned a strategic response were smaller than those firms that did not plan a strategic response, respondents in the 2012 survey did not take the Dodd-Frank Act changes into account in determining the assets under management (AUM) size of their funds and did not envisage a strategic response to the Dodd-Frank Act registration and reporting requirements. Moreover, compliance cost estimates in the 2012 survey were equally moderate, suggesting total compliance costs for the majority of advisers would range from $50,000 to $200,000. The long-term implications of Title IV’s unprecedented registration and reporting obligations for the private fund industry were at the time of the 2012 survey largely unclear.

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