The U.S. Securities and Exchange Commission’s ongoing crusade against private equity industry infractions related to issues including disclosure and fee allocations shows no signs of slowing, with the most recent multimillion-dollar settlements involving Apollo Global Management LLC and WL Ross & Co. LLC.
In Apollo’s case, four private equity fund advisers affiliated with the private equity giant agreed to pay $52.7 million to settle charges they misled fund investors about fees and a loan agreement, among other issues. Meanwhile, WL Ross agreed to shell out $2.3 million in civil penalties to end allegations that the firm overcharged funds it advised $12 million in fees over a 10-year period, which it later reimbursed. Apollo and WL Ross join private equity titans like The Blackstone Group LP and KKR & Co. LP, among others, on the list of firms that have reached multimillion-dollar settlements with the SEC since the beginning of last year.
Here, Law360 explores three takeaways from this most recent collection of settlements between the SEC and some of the most well-known private equity players.