Drew Bowden Thinks Private Equity is a Great Business

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“I tell my son, I have a teenaged son, I tell him, ‘Cole, you want to be in private equity. That’s where to go, that’s a great business, that’s a really good business. That’ll be good for you.'” – Andrew Bowden

Mr. Bowden, Director of the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations, was speaking at Emerging Regulatory Issues in Private Equity, Venture Capital, & Capital Formation in Silicon Valley, hosted by Stanford Law School.

His quote was in the context of the financial services industry complaining about too much regulation. His comment led some to question the SEC’s coziness with the industry.

I still remember Bowden’s speech delivered at the 2014 PEI Private Fund Compliance Forum. He figuratively threw a grenade in the room by saying his team found violations of law or material weaknesses in over 50% of the exams of private equity firms when it came to fees and expenses.

I don’t see his speech as industry capture. I see it as telling private equity to quit complaining and get your house in order. Private equity is good for investors and good for managers. Don’t screw up.

It’s the job of compliance to keep the good thing going and not let the firm screw up.

Sources:

Image of Andrew Bowden is by the Securities and Exchange Commission (on Flickr!?!)

OCIE Director Drew Bowden On Exams, CCO liability and more

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IA Watch was able to get Drew Bowden, the Securities and Exchange Commission’s Director of the Office of Compliance Inspections and Examinations, to sit down for an interview. “The best thing [CCOs] can do is to be organized, be responsive and be helpful to the examination staff”. This can be measured by how timely you produce requested documents. “It’s most helpful” when firms begin an exam by educating examiners “about the nature of their business [and] what they’re trying to accomplish from a business perspective,”

Portions of the interview are available for your viewing:

IA Watch Interviews Drew Bowden, Part 1



IA Watch Interviews OCIE Director Drew Bowden, Part 2

References:

IA Watch Exclusive: OCIE Director Drew Bowden talks exam do’s and don’ts, CCO liability and more
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