Private Funds’ Secretive ‘Side Letter’ Deals Are Targeted by SEC

Bloomberg Law – In a story about The Securities and Exchange Commission’s proposal that would prohibit private investment funds from giving “side letters” to chosen investors for preferential terms, Healthy Markets President and CEO Tyler Gellasch is quoted saying “If you’re giving someone else a right that they’ve decided to negotiate, it’s obviously valuable. The flip side of that is not having that right is also valuable,” Gellasch said. “That may materially impact the risks and the returns of the private investment for the firms left behind.” (Full Story).

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