This study assesses the effects of Dodd-Frank Act compliance costs on the private fund industry. Using hand-selected compliance cost estimates from private fund advisers (N=94) the study shows with two independent datasets that the number of funds managed by private fund advisers is associated...

A common complaint suggests that compliance with financial regulation brings increasing returns to scale and predominantly affects smaller firms. Many studies have shown that an inverse relationship exists between the size of regulated firms and the per-unit cost of compliance. Anecdotal...