Country / Language

Regulatory and Compliance Issues: The Calm after the Storm

Third Quarter - 2014

Read the full newsletter.

With new regulatory and compliance requirements becoming effective this year, 2014 was greeted with wariness, if not trepidation, among private equity real estate funds. With the end of the year at hand, however, it can be said that most firms weathered the changes well. The smaller shops wisely turned to fund administration firms, which had expanded their offerings from accounting and back-office to include compliance services. The mid-size and larger firms, of course, had the internal resources to clear the raised bar (which is not to imply that this was accomplished without some effort).

Indeed, it’s the fund administration industry that has been going through changes. The onslaught of work they received from smaller firms allowed them to quickly grow the sophistication of their offerings; as a result they are now going after—and winning—business from the midsized and larger firms. And as the market for outsourced compliance becomes both larger and broader, it is becoming an attractive target for software development firms, who are creating applications to automate elements of the compliance process.

Besides the issue of compliance itself, 2014’s regulatory changes brought the expectation that capital would become scarce for many developers, providing a wider opening for private equity firms. This may well turn out to be the case, but it’s too soon to tell. After all, the ADC loans in place were largely unaffected by the new requirements—it’s the projects originating this year that have to contend with the new reality. By the second half of 2015, however, a clear picture will emerge.

Compared to previous years, 2015 should be a quiet one on the legislative front, particularly with Republicans in control of both chambers of Congress. Instead, the spotlight has shifted to Europe, which is undergoing its own regulatory reexaminations. This suggests that the regulatory playing field will more or less level out in the short term, staving off the exodus of investment from the United States that some had feared. This leveling will be helped along by the continued strengthening of the dollar, which has been on a steady upward climb since the spring


For more information, please contact Jason Burian, partner, at or 312-508-5935.

Visit the Commercial Real Estate Industry Practice webpage to learn about our services.

This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

Search Our People

Search Our People

Look ahead. Gain insight. Imagine more. Is your business ready to break through?

View our new TV commercial..

Industry Outlooks

Industry Outlooks

Gain insight into what is ahead for the Commercial Real Estate, Technology and Middle Market Private Equity industries.


Learn about our upcoming events.


Working With Us

Working With Us

What makes CohnReznick different from others in our profession? And what should our clients come to expect when working with us? The answer is The CohnReznick Advantage. Contact us to learn how we can out the CohnReznick Advantage to work for your business.


The value of an organization is determined by the skills and qualities of its leaders. With more than 280 partners serving clients nationwide, CohnReznick is renowned for the diverse experiences, knowledge and backgrounds of its leadership.

Learn More


We align our services in three segments: Accounting and Assurance, Tax, and Advisory. This approach allows us to provide holistic solutions to complex business problems and to seize upon opportunities requiring an integrated approach.

Learn More


Accounting and tax issues different significantly based on an organization's industry. We provide clients with expertise in nearly two dozen industries – we know the opportunities, the obstacles, the competitive landscape.

Learn more


CohnReznick professionals are thought leaders in their industries. Clients benefit from relevant and timely economic, legislative and industry insights that can keep them a step ahead of competition.

Learn More

Global Reach

Our involvement in the Nexia International network of firms enables us assist our clients wherever they do business-providing local expertise and connections wherever they needed. Nexia is comprised of 20,000 professionals operating in over 100 countries.

Learn More