Lightyear Capital Llc

Allegations: ACCORDING TO THE ORDER, LIGHTYEAR FAILED TO PROPERLY ALLOCATE CERTAIN EXPENSES (I) TO THE EMPLOYEE FUNDS WHICH INVEST SIDE-BY-SIDE ON A PROPORTIONAL BASIS WITH CERTAIN PRIVATE EQUITY FUNDS ADVISED BY LIGHTYEAR AND ITS AFFILIATES (THE "FLAGSHIP FUNDS") AND (II) TO CERTAIN CO-INVESTORS THAT WERE PERMITTED AT TIMES TO INVEST IN PARTICULAR PORTFOLIO COMPANIES OF THE FLAGSHIP FUNDS. ACCORDING TO THE ORDER, LIGHTYEAR FAILED TO PROPERLY OFFSET MANAGEMENT FEES IN CONNECTION WITH UNDISCLOSED FEE-SHARING AGREEMENTS WITH CERTAIN CO-INVESTORS. THE ORDER STATES THAT LIGHTYEAR FAILED TO ADOPT WRITTEN POLICIES AND PROCEDURES REASONABLY DESIGNED TO PREVENT THESE VIOLATIONS OF THE ADVISERS ACT AND ALSO FAILED TO ADOPT AND IMPLEMENT WRITTEN POLICIES AND PROCEDURES RELATED TO A REPRESENTATION MADE IN EACH OF THE LIMITED PARTNERSHIP AGREEMENTS OF ITS FLAGSHIP FUNDS WHICH STATED THAT LIGHTYEAR WOULD SEEK TO HAVE PROSPECTIVE PORTFOLIO COMPANIES BEAR THE COST OF BROKEN DEAL EXPENSES. Status: Final Sanction Detail: PURSUANT TO THE ORDER, THE CIVIL PENALTY WILL BE PAID WITHIN 10 DAYS OF THE ENTRY OF THE ORDER. Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS IN THE SEC'S ORDER, LIGHTYEAR CAPITAL LLC MADE AN OFFER OF SETTLEMENT WHICH THE SEC ACCEPTED. THE SEC ADMINISTRATIVE ORDER IS FINAL. PURSUANT TO THE ORDER, THE CIVIL PENALTY WILL BE PAID WITHIN 10 DAYS OF THE ENTRY OF THE ORDER.