California’s governor signed Assembly Bill 2833, enacting provisions that are intended to increase the transparency of fees paid by public investment funds to alternative investment vehicles. Under the new law:
The new disclosure requirements are effective for all new contracts a public investment fund enters into on or after January 1, 2017, and to all existing contracts in which the fund makes a new capital commitment on or after January 1, 2017.
Public investment funds are to require that each alternative investment vehicle in which it invests make the following disclosures at least annually:
A public investment fund is required to disclose the information provided to it by the alternative investment vehicle at least once annually in a report presented at a meeting open to the public. The report must include the gross and net rate of return of each alternative investment vehicle, since its inception, in which the public investment fund participates. The public investment fund may report the gross and net rate of return and information based on its own calculations or based on calculations provided by the alternative investment vehicle.
Read a September 2016 report [PDF 162 KB] prepared by KPMG LLP.
For more information, contact a tax professional with KPMG’s State and Local Tax practice
Scot Grierson | +1 (949) 885-5643
Abner Chong | +1 (213) 593-6618
Amanda Sterling | +1 (213) 593-6345
Gina Rodriquez | +1 (916) 551-3132
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