When the SEC released proposed private fund reforms (Proposal) in February 2022, it launched an offensive attacking various ways in which the private funds industry currently operates. “In many ways, the Proposal reflects some of the most significant changes we’ve seen in the private funds space since Dodd-Frank, when everybody had to register,” observed Schulte Roth partner Benjamin Kozinn. “There are a lot of details to be unpacked, but as you read the Proposal, you start realizing there’s more than meets the eye in terms of the potential unintended effects of what the SEC is proposing.” The deadline for comments on the Proposal is less than three weeks away. This first article in a two-part series provides general observations on the Proposal and what it says about the SEC’s view of the private funds space. The second article will lay out specific industry concerns for each of the proposed rules and discuss the next steps for the SEC and private fund managers. For a summary of the rules and rule amendments in the Proposal, see “Overview of the Proposal and the Importance of Industry Comments” (March 17, 2022).