Johnson, Rucker Featured Guest Columnists for Private Funds CFO

SEC could take fairness opinions from 'nice to have' to 'must have' for continuation funds

By: Justin Johnson | Chad Rucker

New York, NY and San Francisco, CA (April 14, 2022) Justin Johnson, CFA, co-CEO and senior managing director, and Chad Rucker, senior managing director, are featured guest bloggers in the newest Private Funds CFO publication with their column “SEC could take fairness opinions from ‘nice to have’ to ‘must have’ for continuation funds.” In the online publication, which delivers news and information for CFOs and professionals who oversee the financial, operational, and legal functions within private equity firms and the global alternative asset industry, Rucker and Johnson discuss the continuation fund market and the growing consensus that fairness opinions are necessary best practice for the health of the market. Plus, the Securities and Exchange Commission may be requiring them soon.

In the blog, Rucker gives background saying, “The SEC recently proposed new rules under the ’40 Act that would require GPs to obtain – and share with interested parties – a fairness opinion from an independent opinion provider…,” and continues, “In its proposal, the agency avers that there is a legitimate role for adviser-led secondary transactions because they can provide one group of investors with liquidity while buying time and sometimes providing additional capital to help investments to mature, thereby maximizing value for investors that wish to remain in the fund.”

Read the full article at Private Funds CFO. {Note, a subscription or registration may be needed to access the piece.}

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