The client, their challenge
Our client, a global multi-billion-dollar private equity and credit manager, was navigating a complex wind down of operations. Several months into the process, the firm’s Chief Compliance Officer (CCO) resigned, leaving the firm with no clear options for filling this critical compliance leadership gap.
For firms navigating mergers and acquisitions, restructurings, personnel transitions, or wind downs, retaining a full-time, experienced CCO can be costly and finding quality interim solutions nearly impossible. Outsourcing offers a scalable, highly efficient alternative, providing best-in-class expertise without the permanence and overhead of a dedicated full-time employee. It also eliminates common pitfalls associated with “dual-hatted” employees who may otherwise need to absorb certain compliance functions in the wake of a CCO departure.
The client needed a quick, cost-effective and experienced solution to maintain compliance continuity and uphold their reputation during this critical phase.
Our solution
We delivered outsourced CCO services, providing end-to-end compliance support. We began by designating a dedicated individual to hold the CCO title, then:
- Conducted annual compliance reviews under Rule 206(4)-7
- Performed marketing and advertising compliance reviews
- Maintained compliance calendars and logs
- Provided code of ethics oversight
- Participated in investor due diligence meetings
- Joined key internal committees
- Delivered full support during Securities and Exchange Commission (SEC) examinations.
Our model is designed for flexibility and scalability, enabling firms to quickly access additional resources or specialized expertise without the delays of internal hiring.
Results
- Achieved cost efficiency during a period when revenue streams were tapering, making a full-time senior compliance hire prohibitively expensive
- Maintained regulatory compliance throughout the wind down, ensuring all compliance obligations were met even as operations scaled back
- Ensured operational continuity by providing stability and keeping the compliance program running efficiently despite internal departures
- Preserved investor confidence by demonstrating the firm’s commitment to maintaining industry-leading compliance standards through to the completion of the wind down.
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