Stay ahead of the curve with Seward & Kissel’s analysis of Form ADV Part 2A (“Brochure”) filings from leading SEC-registered investment advisers. The report highlights four major disclosure trends shaping the investment management landscape:
- Enhanced Management-Related Disclosures
- Advisers are providing more detail on affiliated services, including collateral management, portfolio monitoring, and due diligence.
- New disclosures address the use of artificial intelligence and machine learning.
- Advisory committees and family office structures are increasingly discussed.
- Bespoke client terms and relationships with outside vendors are receiving greater attention.
- Expanded Fund Expense Transparency
- Technology-related costs, business development activities, and investor meetings are now more frequently disclosed.
- New categories such as cyber and crime insurance, background investigations, and investor-requested reporting templates are being included.
- Greater detail on pass-through expense models helps clients understand fund operating costs.
- Increased Risk and Conflict of Interest Disclosures
- Advisers are addressing emerging risks, including digital asset regulation, AI, geopolitical events, climate change, and hybrid work arrangements.
- Conflicts of interest are more thoroughly disclosed, especially when offering affiliated services or entering new business lines.
- Growth in New Investment Strategies and Structures
- Advisers are expanding into cryptocurrencies, digital infrastructure, CMBS/CLOs, and specialized opportunity funds.
- New structures such as separately managed accounts, single investor funds, co-investment vehicles, continuation funds, and feeder funds offer greater flexibility for investors.
For more insights or to discuss how these changes may impact your business, contact Seward & Kissel’s Investment Management Group.