The number of large private equity funds that are required to file Form PF has grown by 33% while the number large hedge funds with similar requirements shrank by 9.5% in the past year, the US Securities and Exchange Commission (SEC) has reported.
According to its second annual report to Congress, which is required under the Dodd-Frank Act, the SEC witnessed 957 new large private equity funds reporting while 364 large liquidity funds stopped reporting in 2013.
The regulator also saw an additional 2,243 small adviser funds, or approximately 18%, begin reporting using Form PF in 2013 compared to 2012. Only the number of large liquidity funds remained close to stagnant with only one new fund reporting for an approximate 2% growth.
Besides individual private funds needing to report, Dodd-Frank also requires the private financial advisers who manage these funds also to file their own Form PF, which several new advisers did in 2013.
A total of 273, or 14.1%, additional small advisers, defined as having US$150 million in private fund regulatory assets under management (RAUM), filed with the SEC for the first time last year. At the same time, 72 large hedge fund advisers, those with US$1.5 billion of hedge fund RAUM, reported, a 13% increase. Similarly 29 new large private equity fund advisers, those with US$2 billion in RAUM, also began reporting in 2013 for a 14.5%.
The only category of advisers that did not see growth were the large liquidity advisers, those who manage US$1 billion in combined liquidity fund and money market RAUM. Their number remained constant with 25 advisers reporting in 2012 and 2013.
All of the data collected by the SEC via Form PF is used by the Financial Stability Oversight Council (FSOC) to assist with its systemic risk-monitoring obligation. However, the SEC’s Office of Compliance Inspection and Examinations, Division of Economic Risk Analysis, Division of Enforcement and Division of Investment Management also user the collected data to fulfill their respective regulatory mandates.
SEC Sees Private Equity Boom
The number of large private equity funds that are required to file Form
PF has grown by 33% while the number large hedge funds with similar
requirements shrank by 9.5% in the past year, the US Securities and
Exchange Commission (SEC) has reported.
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