Schulte Roth & Zabel

Latest Articles

Real estate fund managers were among the myriad private fund advisers affected by changes to the SEC’s registration requirements under the Dodd-Frank Act in 2011. In the lead-up to the Dodd-Frank registration deadline in March 2012, and for many months thereafter, newly-registered fund managers faced numerous challenges when confronted with the reality of implementing an effective compliance program. Following the SEC’s recently announced expansion of its exam program to focus on real estate fund managers,…
Schulte Roth & Zabel has partnered with Private Equity International to release Fund Formation and Incentives Report, a research study of senior private equity managers. The report provides an analysis of the issues affecting general partner operations, such as waterfall structures, key man clauses, compensation and recruitment. Based on an online survey and in-depth interviews of 130 private fund managers from around the world, it examines how managers structure funds to ensure alignment of interests with…
The Foreign Account Tax Compliance Act (“FATCA”) generally imposes registration, due diligence, withholding and reporting obligations on certain investment funds and investment fund managers. Under the U.S. Treasury regulations, foreign financial institutions (“FFIs”), including investment funds and investment managers that are organized outside of the U.S., would be required to register and enter into an agreement (an “FFI Agreement”) with the U.S. Internal Revenue Service (“IRS”) in order to ensure compliance with FATCA. In an…
The November 2012 issue of Financier Worldwide Magazine included a discussion on Alternative Investment Fund Managers Directive compliance. The discussion highlighted the background on key political arguments that led to the drafting of the AIFM Directive, provisions of the Directive considered most controversial, what steps fund managers should take to prepare for compliance and the ways in which the Directive will shape the alternative funds market inEurope. To read the article that appeared in Financier…
As was anticipated in our previous blog posting on 2 April 2012, clarification on certain aspects of the EU’s new short selling regulation relating to CDS on EU sovereign debt was published by ESMA on 20 April 2012. This final technical advice from ESMA to the European Commission on the new EU short selling rules provides guidance on various matters, including (a) when a person is deemed to have a net short position in EU…
Credit default swaps on EU sovereign debt are also covered by the EU’s new short selling regulation, which will come into force across the EU on Nov. 1, 2012. The Regulation prohibits uncovered or “naked” shorting of EU listed securities and CDS on EU sovereign debt. However, ESMA recognizes that a wide range of risks could be eligible for hedging through a sovereign CDS position and has stated that it believes that the most flexible…