What is the Private Equity Investors’ Bill of Rights?
The Private Equity Investors’ Bill of Rights is a set of principles aimed at protecting investors in private equity funds. The Bill of Rights was established in order to ensure that private equity funds, their managers and employees are transparent and fair in their dealings with investors. The Bill of Rights is based on the principle that investors have a right to know what is happening in the fund, including important information such as financial performance, terms of the fund and how decisions are made. Specifically, the bill includes rights such as the right to receive timely and accurate financial information, the right to receive fair treatment and equal access to information and the right to be informed of any potential conflicts of interest. In addition, the Bill of Rights grants investors the right to inspect all financial documents and records, and to receive adequate notice before any important decisions are made. The Private Equity Investors’ Bill of Rights is currently recognized in several states including Florida. In Florida, private equity fund managers and their employees are required to disclose all relevant information to investors in a timely manner. Private equity funds in Florida are also subject to the rule of fair dealing, which requires them to treat investors consistently and in good faith.
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