Private Funds Reporting Update

May 2, 2016

The U.S. Bureau of Economic Analysis (BEA) and the Treasury Department are preparing to implement a reporting change that will affect how certain cross-border investments by and in private funds are reportedTreasury International Capital (TIC) surveys of portfolio investment and BEA surveys of direct investment are impacted by this change. 

Currently, any U.S. entity with a 10% or more voting interest in a foreign private fund or any foreign entity with a 10% or more voting interest in a U.S. private fund is subject to BEA filing.

The BEA recognizes two types of private funds, for reporting purposes:

1.  Private funds that make direct investments

2Private funds that make only portfolio investments 

Going forward, owners of private funds whose investments function as portfolio investments, rather than direct investments, will report the investments to the Treasury Department, rather than the BEA.  The BEA, in cooperation with the Treasury Department, will instruct reporters with investments that display characteristics of portfolio investment to report in the future through the TIC reporting system.  This change will be effective with surveys conducted in 2017.  

Investments in operating companies, including investments by and through private funds into operating companies, will continue to be reported to the BEA, as will BEA services surveys BE-180 and BE-185, where applicable


For more information on how your reporting obligations may be affected, please contact Porzio Compliance Services (PorzioCS) for additional details and guidance.

PorzioCS is dedicated to simplifying extensive compliance requirements, streamlining the filing process and significantly decreasing the individual organization's reporting burden and mitigating risk.  Our team guides businesses on the implementation of systematic data collection, analyses  and retention policies, and tailors data collection and reporting processes in order to ensure each client's compliance.