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John Hunt authored the article, "New SEC rules for private fund managers: implications for offshore investment advisers," published in the February 2024 edition of Financier Worldwide Magazine.

In August 2023, the US Securities and Exchange Commission (SEC) adopted highly anticipated new rules and amendments – the Private Funds Rules – to the US Investment Advisers Act of 1940 (Advisers Act). The Private Funds Rules, when fully effective, will significantly impact how investment advisers – both those registered with the SEC and those unregistered – manage and administer private funds, such as hedge funds, private equity (PE) funds, real estate PE funds and venture capital funds.

The focus of the Private Funds Rules, as with the Advisers Act generally, is US-based investment advisers. The Private Funds Rules, however, also may apply to offshore investment advisers, that is, investment advisers whose primary office and place of business is located primarily outside of the US. While the implications of the Private Funds Rules may be limited with respect to many offshore investment advisers, those implications are not particularly obvious. This article focuses on potential implications of the Private Funds Rules specifically to offshore investment advisers.