CLIENT ALERT: Fund Manager Settles SEC Claim for Misallocation of “Broken Deal” Expenses

June 30, 2015 - The Securities and Exchange Commission announced that Kohlberg Kravis Roberts & Co. had agreed to pay a $30 million fine to settle charges that KKR had violated its fiduciary duties to its private equity fund investors by misallocating so-called “broken deal expenses” over a seven year period beginning in 2005.

This settlement, the first against a registered investment adviser for misallocating broken deal expenses, highlights the SEC's increasingly elevated focus on private equity fund investor protections, particularly with respect to disclosure to such investors. Click here to read the full article.