Although the SEC is focusing on many topics and issues, the private funds industry should not assume that it can fly under the Commission’s radar. In fact, Chair Gary Gensler recently gave a speech about private funds and the importance of hedge and private equity funds to the capital markets, remarking that it was time to “bring more sunshine and competition to the private funds space.” Thus, it is clear that the SEC will not only continue to scrutinize private fund manager practices but also propose new or enhanced rulemaking in this space. A recent session hosted by the Practising Law Institute discussed some of the key areas the SEC will be focusing on with respect to private fund managers. Moderated by Gibson Dunn partner Barry R. Goldsmith, the panel featured Marc E. Elovitz, partner at Schulte Roth; Ranah Esmaili, partner at Sidley Austin; Ken C. Joseph, managing director at Kroll, LLC; and Maurya C. Keating, Associate Regional Director of the SEC’s New York Regional Office. This first article in a two-part series summarizes the key points regarding recent enforcement actions targeting alternative data and so-called “shadow trading.” The second article will review SEC examination trends, priorities and deficiency letters. See “SEC Compliance and Enforcement Expectations for Private Funds Under Chair Gensler” (Oct. 7, 2021).