On August 23, 2023, the SEC voted (3-2) to adopt new rules and amendments under the Investment Advisers Act of 1940 applicable to private fund advisers (available here), which were initially proposed in February 2022. For reference, the Paul Hastings Investment Funds & Private Capital (IFPC) client alert on the initial rule proposal is available here. The initial proposal represented a significant overhaul to the regulatory regime applicable to private funds and their advisers, and attracted intense industry scrutiny and attention. Accordingly, the final rule release had been hotly anticipated by observers eager to see just how far the agency would go in imposing sweeping new rules.

The final rule release runs to 660 pages, and industry participants will need time to fully digest the contours of the new rules. The following is Part 1 of IFPC’s client alerts on the new rules, and includes an overview of certain key considerations. Part 2 will follow with additional detail and analysis on specific provisions.