Executive Summary

The private asset management industry has experienced remarkable growth since the Global Financial Crisis, capitalizing on heightened regulatory scrutiny faced by traditional providers of capital, mainly banks and capital markets. In contrast, private asset managers have largely operated within a comparatively unregulated landscape. However, this landscape is on the verge of transformation with the forthcoming adoption of the Securities and Exchange Commission (SEC) rules aimed at enhancing transparency, accountability, and fairness in the private fund industry. This significant development is poised to exert a profound impact on private fund advisers, reshaping the fee structure and redefining operational practices.