The Securities and Exchange Commission (SEC) has cited research from Ludovic Phalippou in a recently proposed policy to govern private funds.
The policy sets out new rules which would prevent private fund advisers from engaging in certain sales practices, conflicts of interest, and compensation schemes that are contrary to the public interest and the protection of investors.
The SEC has drawn on several of Professor Ludovic Phalippou’s research outputs to justify a number of these new rules. Included is a 2007 article published in Harvard Business Review on ‘the truth about private equity performance’, which discussed research showing that private equity fund performance is often reported in a way that exaggerates the truth. The full research study, which was published two years later in The Review of Financial Studies, is also cited.