The Securities and Exchange Commission (SEC) adopted amendments to Form PF on May 3, 2023. The SEC noted that the changes would enhance its ability to monitor and assess systemic risks in the private funds industry. The new amendments will expand the Form PF disclosure requirements to require all private fund advisers subject to Form PF reporting to file new quarterly and annual reports. The Form PF amendments were published in the Federal Register on June 12, 2023.
Quarterly Reporting of Certain Material Events by All Private Equity Fund Advisers
Beginning on December 11, 2023, all private equity fund advisers subject to Form PF reporting will be required to report the following additional information under newly created Section 6 within 60 days of the end of the quarter in which the event occurs:
Additional Annual Reporting by Large Private Equity Fund Advisers
Large private equity fund advisers ($2 billion or more in private equity AUM) will be subject to additional annual reporting obligations starting with their 2024 fiscal year Form PF filings which should be filed before April 30, 2025. The new requirements include reporting on General Partner and Limited Partner clawback events, such as:
In addition, the amended Form PF will include more granular reporting in Section 4, requiring information about a fund's investment strategy, additional details on fund-level borrowing, default events, and institutions providing bridge financing.
The SEC's decision to adopt these changes follows a public comment period during which industry participants raised concerns about the burdens that the new requirements could impose on smaller private equity fund advisers. However, the SEC determined that the benefits of increased reporting outweighed the costs. The changes to Form PF are part of the SEC's ongoing efforts to strengthen oversight of the private equity fund industry. The SEC believes this data will help them better understand and address risks to investors and the broader financial system.
How private equity fund advisers should prepare
As the compliance date approaches, private equity fund advisers should consider taking the following steps:
Petra Funds Group’s compliance team has decades of experience managing SEC regulatory compliance programs for private equity fund advisers. The group’s expertise enables them to provide insight and guidance on a wide range of regulatory compliance services, from investment adviser registration to ongoing compliance support to performing SEC mock examinations. Learn more about Petra’s comprehensive compliance offering here.
Please get in touch with a member of Petra's compliance team with any questions you have about the Form PF amendments or other regulatory compliance matters.
