Nearly 1400 Private Fund Advisers Registered Due to Dodd-Frank
The SEC’s Division of Investment Management released summary data indicating that 1,369 private fund advisers registered with the SEC as a result of the Dodd-Frank Act. The SEC reports that nearly 4,000 private fund advisers, advising over 30,000 private funds with $8 trillion in assets, are registered with the Commission. The SEC also reports that 32% of all registered advisers advise at least one private fund. Hedge funds comprise 53% of assets, and private equity funds represent 24%. Additionally, nearly 2,000 exempt reporting advisers filed Form ADVs as a result of Dodd-Frank. Although 2,400 advisers will transition to state registration, these advisers represent an immaterial decrease in assets supervised by the SEC.
OUR TAKE: The number of private fund advisers ultimately registering far exceeded the SEC’s initial estimates. These numbers will help SRO advocates who argue that the SEC will need help supervising these advisers.