SEC’s New Framework Proposal for Fund Valuation Practices
The Securities and Exchange Commission (SEC) has proposed a new rule to modernize fund valuation practices. The rule clarifies how fund boards can satisfy their valuation obligations, and, according to SEC Chairman Jay Clayton, “would improve valuation practices, including oversight, thereby protecting investors”. The proposed rule would: establish requirements for determining the fair value of […]
SEC Grants No-Action Relief For The Sale of Debt Securities to Affiliates
On March 26, 2020, the SEC granted no-action relief to help open-end registered investment companies enhance liquidity and fund shareholder redemptions in light of significant securities market disruptions related to COVID-19. The relief broadly allows any Fund holding debt securities, under Rule 17a-9 as slightly modified, to be purchased by any affiliated person of the […]
Valuation Fund Transfers — COVID-19 Considerations
COVID-19 will significantly accelerate the restructuring of private funds through asset transfers from existing funds to related-party funds or affiliate entities. Such fund transfers have significant valuation and fairness issues that should be considered by GPs, LPs, and their advisors. The timing of the COVID-19 crisis creates further challenges in estimating the “fair value” of […]
The Cayman Islands Private Funds Law 2020
On January 8, 2020, the Cayman Islands Government published the Private Funds Law, 2020 (the “Law”).1 The Law was approved by the Cayman Islands Government and enacted into law on February 7, 2020. The Law introduces, among other changes, new standards for the valuation of a private fund’s assets. According to Clause 16 of the […]
COVID-19: Houlihan Capital will Continue to Provide Exceptional Service
Houlihan Capital is committed to delivering superior client value. In the current COVID-19 environment, we are taking every precaution possible to protect the health and safety of our team and their families and will continue to adapt as circumstances evolve. As we continue to monitor developments related to the Covid-19 pandemic, we want to assure […]