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Principles aim to help middle-market private equity firms address increasing regulatory and industry compliance-related issues
February 15 2017: CHICAGO – The Association for Corporate Growth®, the global organization representing 90,000 dealmaking professionals who drive middle-market growth, today released its first iteration of the ACG Private Equity Regulatory & Compliance Principles, also called PERC Principles.
Three years in the making, the PERC Principles were created to help midsize private equity firms manage the ongoing regulation and increasing compliance regime as a result of the Dodd-Frank act and other complicated compliance areas including cybersecurity. The effort to create the PERC Principles was led by a special committee of midsize private equity chief compliance and financial officers known as the Private Equity Regulatory Task Force (PERT). With over 50 member firms, PERT’s aim is to represent the voice of middle-market private equity in Washington, D.C.
"These principles represent countless hours of discussion among PERT member firms, in addition to dialogue with industry regulators. These principles signify the importance that ACG members place as fiduciaries of their firms," said Jason Brown, partner of Victory Park Capital and ACG global chairman. "This is an important milestone as ACG continues to serve as a conduit between midsize private equity firms, industry partners and regulators."
The PERC Principles cover the following topics:
- Co-investments
- Cybersecurity
- Disclosure of Fees & Expenses
- Valuations
PERT is led by six industry practitioners including: Joshua Cherry-Seto with Blue Wolf Capital; Blinn Cirella with Saw Mill Capital; April Evans with Monitor Clipper Partners; David Gershman with Trivest Partners; Julianne Lis-Milam with Hammond, Whitney, Kennedy and Company, Inc.; and Bèla Schwartz with The Riverside Company.
"Middle-market private equity firms are confronted with a dizzying array of compliance requirements and information requests from investors, advisers and regulators—both domestic and foreign," said April Evans, partner and chief financial official with Monitor Clipper Partners and PERT steering committee member. "Complying with the myriad of regulations, along with navigating the regulatory land mines for registered investment advisers, is an ever-increasing task, and the efforts of PERT and the development of the PERC Principles provide us a set of guidelines upon which we can rely as the foundations for private equity firms’ policies and procedures."
The PERC Principles can be found online here.
For more information about ACG, please visit www.acg.org.
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About Association for Corporate Growth
Founded in 1954, ACG has chapters across the globe. ACG’s worldwide network comprises 90,000 professionals within the middle market, including 14,500 members who serve as the investors, lenders, owners, executives and advisers to growing middle-market companies. ACG’s mission is to drive middle-market growth.
Feb 15 2017