Public Pension funds should never be influenced by these firms. Private equity firms look good on a balance sheet, but, their practices are far from credible.
Easy money always look good, but, rarely proves to benefit the economy. Equity firms remove sustainability form any economy. There is no way there are that many poorly managed companies viewed as desirable for garage sales. There is no way. The private equity firms 'hunt' for companies with assets that can be sold for a nice profit along with pension funds.
PUBLISHED : Wednesday, 07 May, 2014, 2:37pm
United States regulators (click here) have found illegal collection of fees or severe compliance shortfalls at more than half of the private equity firms they have examined since 2012, which could lead to tougher supervision of the industry or sanctions against companies.
"By far, the most common observation our examiners have made when examining private equity firms has to do with the adviser's collection of fees and allocation of expenses," said Drew Bowden, the director of the Securities and Exchange Commission's office of compliance inspections and examinations.
"We have identified what we believe are violations of law or material weaknesses in controls over 50 per cent of the time."
The SEC's review of the US$3.5 trillion private equity industry started after the 2010 Dodd-Frank Act authorised greater oversight of money managers, putting many firms under regulatory scrutiny for the first time....
Easy money always look good, but, rarely proves to benefit the economy. Equity firms remove sustainability form any economy. There is no way there are that many poorly managed companies viewed as desirable for garage sales. There is no way. The private equity firms 'hunt' for companies with assets that can be sold for a nice profit along with pension funds.
PUBLISHED : Wednesday, 07 May, 2014, 2:37pm United States regulators (click here) have found illegal collection of fees or severe compliance shortfalls at more than half of the private equity firms they have examined since 2012, which could lead to tougher supervision of the industry or sanctions against companies.
"By far, the most common observation our examiners have made when examining private equity firms has to do with the adviser's collection of fees and allocation of expenses," said Drew Bowden, the director of the Securities and Exchange Commission's office of compliance inspections and examinations.
"We have identified what we believe are violations of law or material weaknesses in controls over 50 per cent of the time."
The SEC's review of the US$3.5 trillion private equity industry started after the 2010 Dodd-Frank Act authorised greater oversight of money managers, putting many firms under regulatory scrutiny for the first time....
