Nb Alternatives Advisers Llc

Allegations: NBAA, WITHOUT ADMITTING OR DENYING ANY WRONGDOING, CONSENTED TO THE ENTRY OF AN ORDER BY THE SEC, WITH RESPECT TO CERTAIN OF THE DYAL FUNDS, ACCORDING TO WHICH THE DYAL FUNDS' MANAGER DID NOT APPROPRIATELY ALLOCATE A PORTION OF THE DYAL CAPITAL PARTNER'S BUSINESS SERVICES PLATFORM (THE "BSP") EXPENSES TO CERTAIN DYAL FUNDS AND DID NOT HAVE PROPER POLICIES AND PROCEDURES IN PLACE TO ENSURE THAT ALL ALLOCATIONS WERE RELATED TO THE UTILIZATION OF THE BSP. Status: Final Sanction Detail: NBAA AGREED AS PART OF THE SETTLEMENT TO PAY DISGORGEMENT OF $2,073,988 (PLUS PREJUDGMENT INTEREST OF $284,620) TO CERTAIN DYAL FUNDS COVERING 2012-2016, AND PAY A CIVIL MONETARY PENALTY OF $375,000 TO THE SEC. Summary: ON DECEMBER 17, 2018, THE SEC ANNOUNCED THAT NBAA, WITHOUT ADMITTING OR DENYING ANY WRONGDOING, CONSENTED TO THE ENTRY OF AN ORDER (THE "ORDER") BY THE SEC FOCUSED SOLELY ON CERTAIN EXPENSE ALLOCATIONS RELATING TO THE BUSINESS SERVICES PLATFORM (THE "BSP"), A TEAM WITHIN THE DYAL CAPITAL PARTNERS DIVISION FOCUSED ON PROVIDING CLIENT DEVELOPMENT, TALENT MANAGEMENT, OPERATIONAL ADVISORY AND OTHER SERVICES TO THE PARTNER MANAGERS IN WHICH THE DYAL FUNDS INVEST. FOLLOWING THE COMPLETION OF THE BLUE OWL TRANSACTION, NO BUSINESSES OF NBAA UTILIZE THE BSP AND ALLOCATES THE EXPENSE ASSOCIATED WITH THE BSP TO AN NBAA-ADVISED FUND. THE SEC ORDER HAD NO FINDING OF INTENTIONAL WRONGDOING OR FRAUD, AND FOUND THAT THE ISSUES RELATING TO THE BSP EXPENSES CEASED IN 2017. ACCORDING TO THE ORDER, WITH RESPECT TO CERTAIN OF THE DYAL FUNDS, THE DYAL FUNDS' MANAGER DID NOT APPROPRIATELY ALLOCATE A PORTION OF THE BSP EXPENSES TO CERTAIN DYAL FUNDS AND DID NOT HAVE PROPER POLICIES AND PROCEDURES IN PLACE TO ENSURE THAT ALL ALLOCATIONS WERE RELATED TO THE UTILIZATION OF THE BSP. THE ORDER REQUIRED NBAA TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND FUTURE VIOLATIONS OF SECTIONS 206(2) AND 206(4) OF THE ADVISERS ACT, AS AMENDED, AND RULES 206(4)-7 AND 206(4)-8 THEREUNDER. NBAA AGREED AS PART OF THE SETTLEMENT TO PAY DISGORGEMENT OF $2,073,988 (PLUS PREJUDGMENT INTEREST OF $284,620) TO CERTAIN DYAL FUNDS COVERING 2012-2016, AND PAY A CIVIL MONETARY PENALTY OF $375,000 TO THE SEC. THE CIVIL MONETARY PENALTY WAS SATISFIED ON JANUARY 3, 2019. THE DISGORGEMENT AND PREJUDGMENT INTEREST WAS SATISFIED ON JUNE 7, 2019.

Allegations: THE BAFIN ALLEGED THAT IN A SINGLE INSTANCE IN 2021, NBSH WILLFULLY FILED A VOTING RIGHTS NOTIFICATION OF DROPPING BELOW 3% HOLDINGS IN ONE GERMAN ISSUER SIX WEEKS AFTER THE FILING DEADLINE. Status: On Appeal Sanction Detail: AS NOTED IN 9, ABOVE, THIS MATTER HAS BEEN APPEALED TO THE BAFIN. Summary: NBSH FILED AN APPEAL TO THE BAFIN ON AUGUST 29, 2024 STATING THAT A SINGLE LATE SHAREHOLDER NOTIFICATION REPORTING A SMALL REDUCTION IN POSITION SIZE WAS DUE TO A CLERICAL ERROR AND THAT THE FIRM HAS SINCE ENHANCED ITS SYSTEMS TO PREVENT FUTURE OCCURRENCES. THE APPEAL REMAINS PENDING.