For many emerging fund managers, exempt reporting adviser (“ERA”) status is the best starting point. However, many fund managers mistakenly assume they should start off as a registered investment adviser (“RIA”) or should remain an ERA even after their activities and strategies change. The question first arises at Fund I, but it’s a recurring question...
ERA vs RIA: When Private Fund Managers Should Make the Switch
December tends to pull private fund managers in several competing directions whether it be portfolio companies needing attention, investors wanting year end reporting, valuations needing to be finalized, auditors beginning their work, and the management company considering about what comes next. These competing interests make the year end a particularly useful time to ask a...