The U.S. Securities and Exchange Commission has proposed allowing advisers to registered funds to receive performance fees on capital gains without requiring investors to meet a qualified client standard. A companion proposal would revise existing interval fund requirements and permit closed-end funds to offer multiple share classes without exemptive relief. Partner Nicole Simon, chair of Stradley Ronon’s retail alternatives funds practice, discussed with Ignites why the performance fee change will matter more for sponsors of certain kinds of closed-end funds, and explained that the interval fund modernization changes are coming at a time when distribution considerations are already tipping many sponsors toward the interval fund model. Read the full article (subscription required).
