Dodd-Frank Leads to 50% Increase in SEC-Registered Private Fund Managers

May 15, 2012 § 1 Comment

According to comments by the Deputy Director of the SEC’s Office of Compliance Inspections and Enforcement, since passage of the Dodd-Frank Act (July 2011), the number of SEC-registered private fund advisers has grown from approximately 2,550 to approximately 4,000–an increase of 52%.

Other items of interest from the speech:

  • There are over 12,000 investment advisers currently registered with the SEC.
  • Of all the SEC-registered investment advisers, about one-third report that they advise at least one private fund.
  • In the aggregate, SEC-registered investment advisers manage approximately $50 trillion in assets.
  • Private funds advised by SEC-registered investment advisers account for approximately 16% of the total assets ($8 trillion) across 30,000 private funds.

The numbers above do not include investment advisers that transitioned from SEC registration to state registration. SEC filing records from earlier this year indicate that approximately 3,000 to 4,000 advisers would be moving to state regulation.

The Deputy Director outlined particular considerations for newly registered investment advisers and hedge fund managers. I will be discussing those recommendations in a subsequent post.


Jack G. Martel is the author of Investment Adviser Law Blog which is devoted to providing information and discussion of interest to investment advisers, private fund managers and others in the financial management industry. Jack is a partner in Ragghianti | Freitas LLP. He has over fifteen years experience in general business and securities transactions with a focus on assisting investment advisers, fund sponsors and managers in all manner of legal, regulatory and compliance issues. Jack can be reached at 415.453.9433.

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