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The SEC on Thursday fined private equity giant TPG Capital for not explicitly disclosing its use of accelerated management fees, related to funds raised nearly a decade ago. The wrist-slap penalty is $13 million, which is below what some rival firms have been forced to pony up.

Accelerated monitoring fees are when a private equity fund signs a long-term "monitoring" agreement with a portfolio company (e..g, 10 years), but is allowed to receive all 10 years of payment even if it sells the company before the term expires. Many firms have been found to have not adequately disclosed (let alone shared) those fees with their limited partners.

  • Such fees have largely disappeared from private equity fund docs, in part due to greater SEC scrutiny. But it's worth noting that The Choice Act, a partial Dodd-Frank rollback that Gary Cohn told Axios is on the 2018 agenda, would remove a requirement that most buyout firms submit the very investor communications that the SEC has used to spot such improprieties.
  • TPG statement: "TPG is firmly committed to upholding the highest governance and transparency standards. The SEC matter at hand relates to the absence of express disclosure in marketing documents, eight or more years ago, about the possible acceleration of monitoring fees, a then-common industry practice. As the SEC order acknowledges, TPG disclosed its receipt of these fees. As we move forward, in conjunction with this resolution, we remain dedicated to continually enhancing our practices on behalf of our fund investors and portfolio companies."
  • The SEC yesterday also announced that yet another senior regulator — Gerald Hodgkins, an associate director of enforcement with more than 20 years of experience — is leaving at year-end to enter private practice.

Go deeper

2 hours ago - World

Brazil begins distributing AstraZeneca coronavirus vaccine

Containers carrying doses of the Oxford/AstraZeneca vaccine arrive in Brazil. Photo: Maurio Pimentel/AFP via Getty Images

Brazil on Saturday began distributing the 2 million doses of the AstraZeneca coronavirus vaccine that arrived from India Friday, Reuters reports.

Why it matters: Brazil has the third highest COVID-19 case-count in the world, according to Johns Hopkins University data. The 2 million doses "only scratch the surface of the shortfall," Brazilian public health experts told the AP.

Sullivan speaks with Israel's national security adviser for the first time

Israeli national security adviser Meir Ben Shabbat U.S. Photo: Mazen Mahdi/Getty Images. U.S. national security adviser Jake Sullivan. Photo: Chandan Khanna/Getty Images

U.S. national security adviser Jake Sullivan spoke on the phone Saturday with his Israeli counterpart Meir Ben Shabbat, Israeli officials tell Axios.

Why it matters: This is the first contact between the Biden White House and Israeli prime minister's office. During the transition, the Biden team refrained from speaking to foreign governments.

Biden speaks to Mexican president about reversing Trump's "draconian immigration policies"

Mexican President Andrés Manuel López Obrador. Ismael Rosas/Eyepix Group/Barcroft Media via Getty Images

President Biden told his Mexican counterpart, Andrés Manuel López Obrador, on a phone call Friday that he plans to reverse former President Trump’s “draconian immigration policies.”

The big picture: The Biden administration has already started repealing several of Trump’s immigration policies, including ordering a 100-day freeze on deporting many unauthorized immigrants, halting work on the southern border wall, and reversing plans to exclude undocumented people from being included in the 2020 census.