These are my notes, live from the forum. (Please pardon the rougher nature.)
Speaker:
Julia D. Corelli, Partner, Pepper Hamilton
Ross A. Oliver, Senior Counsel & Chief Compliance Officer, Crestview Partners
Gwen Reinke, Chief Compliance Officer, Vista Equity Partners
You need to think of marketing as a broader area than advertising.
Deal press releases and portfolio company press releases may describe the firm. Make sure it meets the standards. Your website is marketing.
How do you monitor compliance with your policy? Set up the Google search. Look at employee LinkedIn accounts.
You should on-board new employees to make sure they understand the dos and don’ts, followed by annual training.
Are private funds using general solicitation under 506(c)? The proposed rules have raised many unknowns about the downside to using it. Many are skeptical through true general advertising would be a good way to reach potential investors. Some funds are using to avoid the common foot-faults. (like speaking at a conference.)
The SEC has increased its review of marketing materials as part of its examinations. One focus it the inclusion of GP or other non-fee paying LPs in the performance data.
Prospective investors want to see case studies. The regulatory concern is that it could be considered cherry-picking. Best practice is to include a list of all investments with performance results.
When it comes to net returns there was a split in the audience poll. Half calculated as if everyone paid the highest fee, and the other half exclude non-fee or reduced fee investors in the calculation. Regardless of the choice, you need to disclose.
When it comes to books and records, remember you need to keep the performance backup materials for at least five years after last used.