SEC.gov -Spreading Sunshine in Private Equity
I want to thank Private Equity International for giving me the opportunity to speak with you at an interesting moment in private equity regulation.[1]
According to at least one industry source,[2] since the beginning of the millennium, the private equity industry’s assets under management, defined as the uncalled capital commitments plus the market value of portfolio assets, have increased year after year. With the industry-wide portfolio value increasing steadily, and dry powder remaining around the $1 trillion mark, private equity assets under management are higher than they’ve ever been at just under $3.5 trillion as of June 30, 2013.
In addition, over the last two years, many of your firms have registered with the Commission and are operating as regulated entities. I am hopeful that regulation will have a positive effect on your firms and your industry. Intelligent regulation can enable an asset class to grow by increasing investor confidence in investment models, programs, and products, including those offered by private equity firms.
Within OCIE, we have been sharpening our understanding of the private equity industry and our strategies to engage with you to fulfill our important mission to protect investors and the integrity of our markets. I want to take this opportunity to speak today to share where OCIE is in its efforts to engage with the private equity industry and also to share some insights we have learned from the examinations of private equity advisers we have conducted over the last two years.
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