Fenway Partners, Llc

Allegations: THESE PROCEEDINGS CONCERN THE ALLEGED FAILURE BY FENWAY PARTNERS, LLC, ITS PRINCIPALS AND A FORMER SENIOR EXECUTIVE TO DISCLOSE CONFLICTS OF INTEREST TO A PRIVATE EQUITY FUND CLIENT, AS WELL AS ALLEGED MATERIAL OMISSIONS TO INVESTORS IN THE FUND ABOUT PAYMENTS TO AFFILIATES. THE COMPLETE ALLEGATIONS ARE SET FORTH IN THE SEC'S ORDER INSTITUTING PROCEEDINGS DATED NOVEMBER 3, 2015, RELEASE NO. 4253. Status: Final Sanction Detail: THE ORDER INSTITUTING PROCEEDINGS PROVIDES THAT FENWAY PARTNERS, LLC, AND RESPONDENTS PETER LAMM, WILLIAM GREGORY SMART, AND A FORMER EXECUTIVE OF FENWAY PARTNERS WILL PAY TOTAL DISGORGEMENT OF $8,716,471.10, CONSISTING OF $7,892,000 OF DISGORGEMENT AND $824,471.10 OF PREJUDGMENT INTEREST, ON A JOINT AND SEVERAL BASIS. THE RESPONDENTS, EXCEPT FOR MR. WIACEK, WERE ALSO CENSURED PURSUANT TO THE TERMS OF THE ORDER. RESPONDENTS SHALL ALSO PAY A TOTAL OF $1,525,000 OF CIVIL MONEY PENALTIES, WHICH SHALL BE MADE AS FOLLOWS: $1,000,000 BY FENWAY PARTNERS, LLC; $150,000 BY LAMM; $150,000 BY SMART; $150,000 BY THE FORMER EXECUTIVE; AND $75,000 BY RESPONDENT WALTER WIACEK. THESE AMOUNTS WERE DEPOSITED INTO A DISTRIBUTION FUND FOR THE BENEFIT OF LIMITED PARTNERS ON NOVEMBER 24, 2015 AND NOVEMBER 25, 2015 AND DISTRIBUTED TO SUCH LIMITED PARTNERS ON OR BEFORE JANUARY 26, 2016. Summary: THE SEC FILED AN ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTIONS 203(E), 203(F) AND 203(K) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE AND DESIST ORDER (THE "ORDER") ON NOVEMBER 3, 2015, TO WHICH FENWAY PARTNERS, PETER LAMM, WILLIAM GREGORY SMART, WALTER WIACEK, AND A FORMER EXECUTIVE OF FENWAY PARTNERS CONSENTED. THE MONETARY SANCTIONS HAVE BEEN DESCRIBED ABOVE AND ARE SET FORTH FULLY IN THE SEC'S RELEASE NO. 4253. NO ADDITIONAL PROCEEDINGS ARE ANTICIPATED AT THIS TIME.