New York partner Kay Gordon was quoted in two articles in HFM Week regarding developments in the investment management industry.
In the first article, titled, “The Short View,” Kay commented on the implications of the Volcker Rule, which forces banks to divest of their private funds’ holdings by July 2016. “The Volcker Rule does not allow a 10-year redemption target, which would have been more appropriate,” said Kay. “This deadline means funds may need to sell positions more quickly than they want to, which is to the detriment of other investors in those funds seeking illiquid exposure.”
In the second article, titled, “Dodd-Frank: Five Years On,” Kay stated that Dodd-Frank was generally a negative development for the private fund industry because it did not promote a free market in competition, and instead increased barriers to entry into the industry. “While Dodd-Frank imposed additional registration and compliance requirements on all industry participants, the new entrants and smaller players who have not been previously registered and/or had lower assets under management and smaller compliance infrastructures were disproportionately affected,” she said.