Fadi Samman Comments on Fundraising Issues for Private Equity Firms

Fadi Samman, a partner in Akin Gump’s investment funds practice, is quoted by FundFire in an article that examines the JOBS Act and a provision that allows private equity and other alternative managers to advertise if they agree to additional regulatory scrutiny.

Samman says the private equity firms most likely to lead the way in the use of advertising are the largest ones that have the resources to manage such campaigns and the smallest ones “that don’t have much of a chance to access capital and lack the relationships and infrastructure.” Many PE firms, he notes, feel the additional disclosure and compliance requirements are too onerous.

As for whether advertising is worth the effort, Samman says it will be up to each individual firm to decide what it “could mean for them reputationally.” It’s a “business decision,” he adds.