On June 1, 2016, the U.S. Securities and Exchange Commission announced a $3.12M settlement with Maryland-based registered investment adviser, Blackstreet Capital Management, LLC, and its managing  member and principal owner, Murry N. Gunty. The SEC’s finding that Blackstreet acted as an unregistered broker-dealer in portfolio company transactions highlights the regulatory focus on broker registration for private equity fund advisers who receive compensation in connection with such transactions, as well as the necessity of having proper policies and procedures in place, particularly in relation to the allocation of expenses and disclosure of conflicted transactions. To read more, please see our recent client alert here.