2. Use of Performance Information in the Marketing of Private Funds (Intermediate)

The Marketing Rule dramatically changed the requirements for use of performance information in the sale of Fund interests, moving substantially beyond anti-fraud concepts.  That rule contains material ambiguities that have challenged CCOs, which are slowly being addressed through staff FAQs, and speeches. This session will equip attendees with the knowledge to navigate the complexities of using performance in sales of private fund interest, including the review of marketing content contained in fund documents. Hear how peers are addressing ambiguities in the Marketing Rule.

Learning Objectives:

·        Learn what the scope of the marketing review should include, such as PPMs.

·        Discuss potential issues associated with performance advertising, including calculation of performance metrics.

·        Understand approaches to fee and expense allocation in presenting extracted performance.

·        Overview of net-of-fees performance in a range of scenarios, including with subscription lines and other forms of leverage.