A private equity manager settled SEC charges for breach of fiduciary duty. The SEC alleged that the manager improperly allocated expenses to certain private equity funds.
As stated in the Order, the SEC alleged that NB Alternatives Advisers LLC ("NBAA") misallocated compensation-related expenses to certain private equity funds it advised (the "Funds") between 2012 and 2016. The SEC found that, during that time, several employees of NBAA's affiliate were charging the Funds for expenses that were unrelated to the employees' work for the Funds. Furthermore, the SEC stated, NBAA failed to establish and implement written compliance policies and procedures to prevent such activity.
NBAA undertook remedial efforts prior to the settlement and agreed to disgorge over $2 million.
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