Implications of the New SEC Marketing Rule for Private Fund Sponsors

Summary

The Securities and Exchange Commission (SEC) recently adopted a new marketing rule that will significantly impact the advertising and solicitation practices of SEC-registered investment advisers (RIAs) that sponsor private funds (Sponsors). This practice note identifies the main benefits and burdens of the new rule, and provides an in-depth analysis of what the rule will mean for Sponsors and how it will affect their fundraising and related activities (with placement agent arrangements to be addressed separately).