Private Equity Firms Unlikely To Sweat SEC Payout Scrutiny

Law360, New York (September 21, 2012, 7:27 PM EDT) -- The U.S. Securities and Exchange Commission is reportedly examining whether some private equity firms have stiffed their investors under certain payout agreements, but experts say the agency will likely find few violations because most businesses know better.

As part of a review of the industry mandated by the Dodd-Frank Act, SEC examiners are making sure buyout funds properly pay investors and sponsors in accordance with their partnership agreements, according to a report Friday by Bloomberg Businessweek.

Regulators are concerned that firms may not be following their...
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