REPE personal trading

I'm an IBD analyst recruiting for REPE funds. 
 

At my IB we have restrictions for personal stocks / trading:

  • You have to complete the online forms which are then reviewed by compliance and you get a response approving or declining 24-48 hours after submission
  • You have to hold your stocks a minimum of 30 days before selling
  • you can't short sell or purchase any financial instruments such as CFDs etc..

I was wondering what it is like at a REPE fund.

Comments (13)

 
Dec 23, 2020 - 8:19am

When you enter the world of "private" assets you will find that all that stuff was just a function of SEC rules regarding publicly traded stocks (i.e. anti-insider trading regs), and thus has no place outside of the regulated world (note, if you are on a REIT/public strategies team, expect to see all come back, but probably be limited to REIT shares or whatever they trade in). 

That said, if you do find a way to front run your firm on a $100 million acquisition, you can expect to be fired lol!   

 
Dec 23, 2020 - 8:49am

Yes you will still have to comply with things like this in REPE. Every fund / institutional investor will have slightly different rules, but for the most part, you'll have to ask before trading, etc. 

If you're at an operator you probably won't. The reason funds do it is because of the outside capital they raise and insider trading. You will know that xyz public company is selling or financing a large asset which may effect the stock price. 

 
Dec 24, 2020 - 11:36am

We have a running list of companies that we need compliance approval to trade. Maybe 20 or so at a given time, its always changing depending on what deals we're working on. Other than that can trade freely, although compliance does have access to monitor all personal accounts.

Array
 
Dec 24, 2020 - 5:22pm

Can't invest in any single name securities, only diversified funds. Firm wide policy to avoid potential conflicts which could arise from PE / other strategies privy to non-public info.

 

Firm I was at prior to that was a fully integrated owner-operator and had several discretionary funds. From memory there was no compliance sign off required for public investments given the firm never dealt with public situations / had access to material non-public info.

 
  • Analyst 1 in RE - Comm
Dec 24, 2020 - 7:21pm

Just started a large institutional fund (>10B AUM), and I had to sign up for compliance. I'm allowed to trade freely, but have to connect all brokerage accounts to their compliance software. There are some restricted stocks, and I can't invest in IPOs but overall lax compared to other compliance regulations. Would imagine this is how most firms operate unless they have a traditional PE arm. 

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