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Final Version of AICPA's Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investments is Released
Valuations of privately held companies is an inherently subjective and complex process, which becomes ever more cumbersome as the capital structure of the portfolio company increases in complexity.
By Audrey Yang, Senior Manager, Alternative Investment Tax Group & Brandon Blitzer, Manager, Alternative Investment Tax Group
Investment funds incur various fund level expenses, including management fees, professional fees and other expenses necessary to operate the fund.
By Vladimir V. Korobov, Partner, Valuation and Litigation Support
As a type of incentive compensation, carried interest and similar profit-sharing arrangements have been around for a long time. The notion of carried interest dates back to medieval times and...
Eight Trends Driving the Social Impact Investment Boom
The impact investing sector is the fastest growing alternative investment market today. Yet it still remains a mystery to many of the leading advisors and accountants in the investment...
By Gabriel Fox, Tax Supervisor & Brian Essman, Tax Manager
As if there weren’t enough decisions to be made when filing a partnership tax return, for tax years beginning after December 31, 2017, partnerships will now need to make a...
By Katelyn Castonguay, Manager, Alternative Investment Group
Accounting guidance that requires consolidation of related investment vehicles and managed funds can cloud the transparency of the financial statements with confusing detail.
Tax Cuts and Jobs Act Takes Aim at Carried Interest
Now more than ever before, hedge fund and private equity managers operate under significant pressure and challenges.
By Joanna Conte, CPA, Director, Assurance Services, Alternative Investment Group
The SEC’s Office of Compliance Inspections and Examinations announced its 2019 examination priorities on December 20, 2018. In the past, OCIE has released its exam priorities in January or February,...
By Arup Das, CEO & Founder of Alphaserve Technologies
ld, investment and asset management firms are seeing increased pressure to incorporate artificial intelligence and data-driven tools into their business practices.
Challenges in the Valuation of Hedge Funds: Part I
It would not come as a surprise to our readers that most, if not all, hedge fund managers consider themselves better-than-average spotters of value and pickers of winning investments.
By Marni Pankin, Partner, Alternative Investment Group
The objective of financial reporting is to provide information on an entity's financial position, performance and cash flows to current and potential investors, creditors, and other stakeholders, so that informed...
By Liliana AbouRafeh, Senior Manager, Alternative Investment Group - Tax & Brandon Blitzer, Senior Manager, Alternative Investment Group - Tax
The Tax Cuts and Jobs Act of 2017 enacted two code sections pertaining to Qualified Opportunity Zones: Code sections 1400Z-1 and 1400Z-2.
By Leslie Bocskor, President, Electrum Partners
Right now, we are seeing a very rare occurrence in the history of the world’s economy: the transformation of black market cannabis into a regulated, lucrative, global industry.
By Joanna Conte, Senior Assurance Manager, Alternative Investment Group
On February 7, 2018, the Securities and Exchange Commission's Office of Compliance Inspections and Examinations announced its 2018 examination priorities.
President Trump Keeps his Promise! Tax Reform is here, and it’s Impacting Fund Managers
Throughout his presidential campaign and during his first year in office, President Trump promised tax reform. He often stated that “we will enact the biggest tax cuts and reforms in...
By Tim Enneking, Managing Director, Crypto Asset Management, LP
Most of us have heard of or read about cryptocurrencies, blockchain, ICOs, Bitcoin millionaires and such, especially over the past year. That’s all well and good; but fads, including investment...
By Colin Gray, CFA, ASA, Stout Risius Ross, LLC
The move towards reporting financial statement components at current value rather than at cost can be traced back to the early 1960s and the release of the Accounting Research Study...
The Plan to Let Pass-Through Taxation...Pass-Through
It seems just a short while ago that voters were lining up at the polls to cast their votes for the next administration. Election Day 2016 signified the end of...
By Derek White, Director, Alternative Investment Group
Rule 206(4)-2 under the Investment Advisers Act of 1940 has been in place for decades, and without major amendment since 2009.
By Len A. Lipton, GlobeTax
Does your fund invest in international securities? If so, there’s a good chance you’re overpaying your taxes.
The New Standard of Investor Transparency and Accountability
Investors are demanding greater transparency from alternative investment firms. While the pendulum has shifted towards less opacity in the industry to a degree, managers still struggle to achieve the right...
By Jodi Lauron, CPA, Senior Assurance Manager, Alternative Investment Group
On June 1, 2017, the Public Company Accounting Oversight Board (PCAOB) adopted Auditing Standard No. 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an...
By Danielle Buchbauer, Tax Manager, Alternative Investment Group & Moshe Biderman, CPA, Tax Partner, Alternative Investment Group
Previously proposed in 2015, the Bipartisan Budget Act includes significant changes to the rules governing federal tax audits of partnerships.
By Isatou Smith and Masao Matsuda, Lainston
Considering that the very objective of investment funds is to take risks for reward, it is not a leap to contemplate the role of enterprise risk management (ERM) for an...
Do You Make the Grade? Most Frequently Identified Deficiencies and Weaknesses Uncovered During Examinations of Registered Investment Advisers
In February 2017, the Office of Compliance Inspections and Examinations, the body charged with conducting the Securities and Exchange Commission's National Exam Program, issued a risk alert that highlighted the...
By John T. Araneo, Managing Director, Align Cybersecurity and General Counsel
Cybersecurity has become an unlikely top-line priority for managers of pooled investment vehicles. The Cybersecurity phenomenon has completely upended the risk management paradigm in both the investment management industry and...
By John Bowlby, Staff, Tax & Business Services & Moshe Biderman, Tax Partner, Alternative Investment Group
The world is changing. Technological innovation and the internet have combined to make it a smaller place. The U.S. economy, while still the largest, is shrinking as a percentage of...
AICPA Task Force to Issue Working Guide on Fair Valuation of Investments: What is on the Horizon?
The AICPA recently assembled a Task Force to develop additional guidance on the fair valuation of investments. The guidance is intended to address a diversity of practices with respect to...
By Michael Purce, Tax Manager, Alternative Investment Practice Group
Within the financial services industry, the topic of self-employment tax has come up time and time again over the course of the last six years. The commentary behind this has...
By Daniel Forbes, Executive Director, DMS Governance (New York)
U.S. managers are flocking back to Europe. How did we get from the depths of the crisis to this point of unlimited opportunity?
Increased Transparency for Investment Advisers: SEC Adopts Amendments to Form ADV and Other Reporting Requirements
Registered investment advisers beware! There will be a revised Form ADV as of October 1, 2017, that incorporates several amendments recently adopted by the Securities and Exchange Commission (the "SEC").
By Art Brown, Alternative Investment Group, Marcum LLP & Mike Quinn, Managing Director, Crederian Fund Services LLC
Do the Right Thing! It's the absolute minimum investors and regulators expect from private fund managers, their third-party fund administrator, and their external auditor.
By Jason Cholewa, ALPS Alternative Investment Services, LLC
It is a common misconception that only third party marketers need to register as broker-dealers. There are situations, where capital raisers employed by investment advisors will also be subject to...
The Modernization of Derivatives Tax Act of 2016 - Reversing Reagan-Era Trickle-Down Economics
It's been a long-time since the the Economic Recovery Tax Act of 1981 ("ERTA") brought us special treatment for regulated futures contracts and a myriad of other complex rules known...
The Marcum Alternative Investment Manager Forum is designed for fund managers on the verge of SEC registration who are looking to institutionalize their business and attract investors.
By Robert Spielman, Partner, Tax & Business Services & Lisa Marino, Vice President, Wealth Preservation, Marcum Financial Services LLC
Since 2009, hedge fund principals have known that deferred management and incentive fees retained offshore would become subject to tax in the 2017 tax year, whether or not funds are...
By Enrique E. Liberman, Esq., Ajoe P. Abraham, Esq., & Mary Madeline Roberts, Esq.
Recently, the Securities and Exchange Commission ("SEC") ended its 80-year ban on private funds soliciting investors through advertisements directed at the general public.
A Renewed Commitment to a Culture of Compliance
With another annual financial reporting season just behind us, now is the perfect time to reflect on lessons learned. It seems most perform the same post-financial statement...
By Steven D. Feldman, Attorney, Murphy & McGonigle
In January 2016, the U.S. Supreme Court waded into the debate on the contours of insider trading law. It is expected to release its decision in the next term, sometime...
By John D’Agostino, Managing Director, DMS Offshore Investment Services
You may think this title is a reflection on the substance of the article; namely, observations on how non-EU funds approach raising capital in Europe. It is not.
Actually, this title...
The Impact of Revised Consolidation Guidance on Asset Managers
Determining whether or not an asset manager is required to consolidate its managed funds has long been an industry issue. The purpose of financial statement reporting is...
By Monte S. Colbert, Director, Tax & Business Services and Iguehi Rajsky, Senior Tax Associate, Alternative Investment Group, Marcum LLP
Innovation is critical to the growth of the U.S. economy, and to encourage innovation the Research & Development Credit (“R&D”) was introduced by the Internal Revenue Service...
By Philip Graham, Partner and Head of Investment Funds at Harneys
The British Virgin Islands, in continuing to distinguish itself as a premier offshore financial services jurisdiction, launched two new fund products on June 1, 2015, to complement...
By Daniel Roche, Director, Advisory Services, Marcum LLP
The purpose of this article is to discuss traditional valuation methodologies when it comes to valuing private equity investments, which are consistent with the fair value definition...
New CIMA Rules on De-Registration: What does It Mean for a Fund in Liquidation?
Fund liquidations have become more and more commonplace in the alternative investment industry since the financial crisis began in 2007. Accordingly, many questions have arisen regarding financial reporting for funds,...
By Jeremy Todd, CFA, Head of West Coast Sales at Orchard Platform
The number of institutional investors investing in marketplace lending assets has increased substantially over the last two years. We at Orchard see four main types of institutional investors as having...
By Nikohl Stegman, Manager, Alternative Investment Industry Group
Since the financial crisis of 2007-2008, the U.S. Securities and Exchange Commission (“SEC”) has issued and amended many rules related to investment advisers in an effort to better monitor the...
More SEC Scrutiny to Come for Private Investment Funds
The SEC's Office of Compliance Inspections and Examinations (“OCIE”) plans a further examination focus on private investment advisors. The areas of focus will be expenses and expense allocation, co-investment allocation...
By Michael Purce, Tax Manager, Alternative Investment Group
In a regulatory environment where taxpayers may feel that compliance with constantly evolving tax reporting requirements is unreasonably difficult, surprises sometimes do happen. In fact, there are instances where the...
By Todd Cipperman, Managing Member, Cipperman Compliance Services
Private fund firms should consider outsourcing to meet their ever-increasing compliance needs. In recent years more firms have turned to compliance outsourcing firms because they can leverage compliance teams to...
By Daniel Smith, CPA, Senior Manager
As the US tax code continues to maintain one of the highest corporate marginal tax rates in the world, at 35%, it may be time for certain companies to consider...
More Disclosure Requirements for Investment Funds
Ever since the 2008 financial crisis, followed by Bernie Madoff's multi- billion dollar Ponzi scheme that rocked the investor world, there has been a call for more transparency of investment...
By Jodi Lauron, Senior Manager, Alternative Investment Group
ll funds regulated under the Cayman Islands' Mutual Funds Law must submit, to the Cayman Islands Monetary Authority (“CIMA”) within six months of the fund's financial year-end (June 30 for...
By Claudia Ramone, CLCS, Vice President of Sales, Maloy Risk Services
2014 was one of the more stable years for Hedge Fund Management Liability, Directors and Officers & Professional Liability. Rates were relatively flat compared to 2013. Insurer capacity increased with...
By Peter J. Bilfield, Shipman & Goodwin LLP
Late last year, the U.S. Commerce Department's Bureau of Economic Analysis (“BEA”) published a final rule to reinstate the reporting requirements of BE-13, which was discontinued in 2009. ...
Custody Rule Update: SEC Independence Rules - What SEC-Registered and State Registered Investment Advisers Should Know
Rule 206(4)-2 of the Investment Advisers Act of 1940 (the Act), or the Custody Rule, requires registered investment advisers who have “custody” of client assets to take steps to guard...
By David Mullé, Partner, Seward & Kissel LLP
In recent years the Securities and Exchange Commission has brought a number of enforcement actions against investment advisers alleging that the advisers did not comply with their best execution obligations....
By Heather Bearfield, Principal, National Technology Assurance Practice Group Leader
Recent cybersecurity breaches such as Target and Neiman Marcus have caused the U.S. Government to start implementing security initiatives throughout all sectors to help defend against cyber-attacks. Companies too often...
Tax Compliance Consequences When a Partnership Invests in Offshore Entities
More and more partnerships are adding foreign investments to their portfolios. However, US partnerships may incur significant penalties if the filing requirements with respect to the foreign investments are not...
By Dennis Schall, Partner, Alternative Investment Industry Group
For the past several years it has been difficult to raise capital for many fund managers. It has become just as hard to keep investors as it was to get...
By Jeff Gendel, Managing Director, Gen II Fund Services
The current fund raising cycle combined with enhanced regulation is uncovering some important new LP trends. In addition to expected questions about returns, investment focus, unique access to deal flow...
By Michael Katz, Quadrangle Consulting LP
Regulatory measures such as Basel III will change the way banks operate and impact the traditional hedge fund financing model - which has largely relied on a prime broker's ability...
To Be or not To Be an Investment Company?
In June 2013, the Financial Accounting Standards Board (“FASB” or the “Board”) issued Accounting Standards Update No. 2013-08, Financial Services-Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure...
By Catherine Smith, General Counsel, Guidepoint Global, LLC
Compliance officers are naturally risk averse and, as such, they initially may have been cautious participants in their firms' expert network relationships. In the last several years, however, through their...
By Ayoub Sunna, CPA, Director, Marcum's Alternative Investment Group
The state of California Department of Business Oversight (DBO), the state agency that oversees registered investment advisers (RIA), issued a new custody rule that applies to California investment advisory firms...
SEC Keeps Custody Compliance on their Radar as Investment Managers Fail to Comply. Are you in Compliance?
The Securities and Exchange Commission announced in February 2014 that its Office of Compliance Inspections and Examinations (OCIE) has launched an initiative directed at investment advisers that have never been...
By Lara Coviello, MA CFA, Managing Partner, Auctus Wealth Management
As our once far-flung global society becomes an ever-shrinking, interdependent global village, more people are paying attention to how their actions and their investments may affect a community or a...
By Shaun Blogg, CPA, Partner-in-Charge, West Palm Beach, Tax & Business Services
With its favorable tax environment, Florida has become a friendly place to do business. Shaun Blogg, of Marcum, discusses the benefits of the Sunshine State for hedge funds and...
By Michael Khouw & Mark W. Guthner, CFA DASH FINANCIAL LLC
Fund managers are in a never ending quest to determine value and compare it to price. If a portfolio manager perceives more value than price reflects, an opportunity to capture...
By Ronen Schwartzman – Founder, Ten Capital Advisors
By Maury Cartine, Partner, Alternative Investment Group
Researchers predict that the Andromeda Galaxy will collide with our very own Milky Way Galaxy in approximately four Billion years. When that happens, life on Earth will be eliminated...
By Christopher Lombardy, Kinetic Partners
By Maury Cartine, Partner-In-Charge of Marcum LLP's National Alternative Investment Industry Group Tax Department
By Sheri Lejman, Partner, Alternative Investment Group and Marni Pankin, Partner, Alternative Investment Group
By Deborah Prutzman, CEO, The Regulatory Fundamentals Group (RFG)
By Lauren Colonna, Principal, Ovis Creative
By Mark McMahon, Managing Director and Maria Nizza, Senior Director, Alvarez & Marsal Valuation Services, LLC
By Kris Gruben, Senior Compliance Consultant, Core Compliance & Legal Services, Inc.
By Marni Pankin, CPA, Partner - Alternative Investments Group and Mike Silvia, CPA, Director - Alternative Investments Group
By Todd K. Warren, Of Counsel, Sadis & Goldberg LLP
By Ronen Schwartzman - Founder, Ten Capital Advisors
By Larry H. Ingber, Esq., Principal, Marcum LLP
By Mary Kate Higham CPA/ABV and Michael Olson, Cognient Group
By Sheri Lejman, CPA, Partner, Alternative Investments Group
By James D. McCann, Esq., and Philip S. Gross, Exq.1
By Bart Mallon, Esq. Partner, Cole-Frieman & Mallon LLP
By Maury Cartine, CPA, JD, Partner-Alternative Investments and Brian Essman, Senior Accountant
By Cynthia Harrington, CFA, CFE, Cynthia Harrington & Associates, LLC
By Sandy Van Keuren, CPA, Tax Director, Marcum LLP
By John Iorillo, Ambrose Employer Group, LLC
By Paul Brook, CPA, MBA, Partner, Compliance Solutions Associates
By Gregory J. Nowak and Matthew R. Silver, Pepper Hamilton LLP, Attorneys at Law
By Jean Paul Schwarz, JD, LLM, Principal, Marcum LLP's Alternative Investment Group
By Zachary Rosenberg, Esq., Associate, Jacko Law Group, PC Compliance Consultant, Core Compliance & Legal Services, Inc.
Christine M. Finn, Esq.; Manager, Marcum LLP, Tax Services and Larry H. Ingber, Esq.; Principal, Marcum LLP, Tax Services
By Jay Gould; Partner, Pillsbury Winthrop Shaw Pitman LLP
By Mark McMahon & Alan Swersky, Duff & Phelps
By Steven D. Feldman, White Collar Criminal Litigation, Partner, Herrick, Feinstein LLP
By Thomas D. Giachetti, Shareholder, Stark & Stark, Attorneys at Law
By Marni Pankin, CPA and Partner, Marcum LLP, Alternative Investment Group
By Rick Martin, Vice President of Technical Accounting, Pluris Valuation Advisors LLC
By Philip S. Gross, Esq. Kleinberg, Kaplan, Wolff, Cohen, P.C.
By Robert S. Schachter, CPA and Michael C. Nader, CPA Marcum LLP
By Mark Donaldson, Founder and Managing Director of Battea – Class Action Services, LLC
By Donna M. Howe, CEO, Windbeam Risk Advisory, LLC
Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland.
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