Advisers to private funds are faced with growing scrutiny regarding internal allocations of fees and expenses. The SEC’s Office of Compliance Inspections and Examinations focuses its examinations on select areas, including advisors’ collection of fees, allocation of expenses, valuation and marketing practices. As a result, investors are now increasingly focused on fee and expense allocations and adequate disclosures.
Kroll's analysis can be applied to a range of fees, including costs for internally provided services, investment management fees, portfolio company fees, broken deal fees, monitoring fees, financing fees, fee offsets and similar arrangements. Our customizable solutions can assist you in remaining competitive, transparent and compliant with regulations.
We can evaluate internal costs and perform benchmarking to establish market rates for internally provided services. While each engagement is bespoke, we apply the following steps:
For external expenses, Kroll ensures the costs are allocated appropriately across the relevant funds. Similarly, Kroll evaluates existing policies for external fees to ensure these procedures align with disclosures made to investors.
Our projects can conclude with the deliverable of your choice, including formal documentation reports that can be provided to investors and/or regulators.
Expert analysis, testimony and advice for construction and engineering disputes and projects.
Valuation, strategic consulting, investigations, expert witness testimony and transfer pricing services related to intellectual property rights and transactions and information risk.
Our team has decades of experience serving as independent advisors, and our client-focused approach and deep technical expertise allows us to work across a spectrum of technologies, industries and data issues.