Broker-Dealer Issues for Private Fund Managers


Summary

This practice note discusses broker-dealer issues under the Securities Exchange Act of 1934 (Exchange Act), that could impact the marketing, and certain other activities, by managers of private investment funds (including hedge funds and private equity funds) with respect to interests issued by such funds or transactions involving their portfolio companies. It suggests ways to conduct those activities so as to avoid having to register under the Exchange Act as a broker-dealer, as well as discussing a more limited category of FINRA membership that may be of interest to certain private equity fund managers.