In The News

New Shops, Big Backers: The Seed-Fueled Boom in Private Markets

Summary: The report shows that veteran deal‑makers are launching new private‑markets firms and attracting sizable seed capital, e.g., the seeding firm Grafine Partners backing newly formed Atlantic Ridge Capital with a $500m target debut fund.

Why it matters: For advisers and allocators, the trend underscores competition for capital among managers, and illustrates how seed‑capital platforms are shaping manager formation and economics, meaning adviser business models, capitalization strategy and investor onboarding may all need to evolve.

Potential action: For emerging managers, pressure-test capitalization, value proposition, and fit with seed/back-office platforms. Established managers should gauge how these trends shift LP competition and allocations, and everyone should re-review partnership/seed/co-investment terms for governance, fee-offsets, disclosures, and conflicts.

Read More Here(WSJ)

Wall Street Meets the Pentagon: PE Tapped for $150B Modernization

Summary: The United States Army is inviting leading private‑equity firms (including Apollo Global Management, The Carlyle Group, KKR & Co. and others) to partner on infrastructure and national‑security‑adjacent opportunities as part of a ~$150 billion overhaul initiative.

Why it matters: For private‑fund managers, this signals a potential expansion of deal‑flow channels into government‑adjacent private‑markets segments — but also raises governance, compliance and contract‑risk issues given the public‑asset nexus and heightened oversight.

Potential action: If you’re pursuing government-adjacent deal flow (infrastructure, strategic minerals, defense supply chain), confirm the strategy’s capability and risk appetite, and nail down governance, contractual, and reporting obligations, especially for PPP structures. Coordinate with legal/compliance to assess any impact on fund classification, investor suitability, and side-letter terms, and align investor communications accordingly.

Read More Here(Financial Times)

AI Trade at Peak: Hedge Funds Hit Highest Chip Bets Since 2016

Summary: Goldman Sachs’ prime-broker data show hedge funds’ exposure to AI-linked tech, especially semiconductors and related equipment, hit its highest level since the bank began tracking in 2016. Buying has skewed toward long positions in U.S. and Asian chip names, with positioning in parts of emerging markets at multi-year highs.

Why it’s important: Concentration in a narrow AI supply chain raises crowding and factor-tilt risks into an event-heavy tape. If momentum reverses or supply-chain headlines bite, correlated de-risking can amplify drawdowns across similarly positioned books.

Potential action: Stress-test tech/AI concentration under earnings and macro shock scenarios; review stop-loss and gross/net guardrails around chip-exposed names. Consider dispersion and tail-risk hedges to mitigate crowding-related gap risk.

Read More Here (Reuters)

Rule Making & Enforcements

U.S. SEC enforcement and Rule Making headlines were limited this week due to the shutdown.

Events

Orical’s Regulatory Breakfast Briefing

Summary: Orical’s Breakfast Briefing on November 13,2025(9:00 AMET;641 Lexington Ave, FL 17; in person or virtual) will explore how operational due diligenceandregulatoryreadinessreinforceeachotheracrossgovernance,controls,and investorcommunications,featuringspecialguestMichaelMerrigan,Founderof Shadmoor Advisors.

Why it matters: LP scrutiny and regulator expectations are converging, so strong ODD now functions as evidence of compliance maturity. Aligning ODD testing with policies, documentation, and monitoring reduces regulatory risk, speeds diligence reviews, and strengthens fund-raising narratives.

Potential action: Register to attend either virtually or in person!

Click Here to Register (Orical)

Orical Publications

Orical’s latest publication, “SEC Agenda Remains Clear Amid Government Shutdown,” analyzes Chairman Paul Atkins’ priorities, including investor protection, IPO revitalization, and crypto rulemaking, amid ongoing government disruptions. The piece highlights how the SEC continues to enforce, monitor, and maintain market integrity despite operational constraints.

Read More Here(Orical)

About Orical

Orical is a trusted leader in investment management compliance consulting and compliance technology solutions. Founded by experienced investment management attorneys and former C-Suite executives, Orical has spent over 15 years helping investment advisers, private funds, and asset managers meet regulatory requirements with confidence. Our team delivers practical, business-focused compliance solutions designed to reduce risk, streamline operations, and navigate complex SEC and regulatory challenges.

Read More Here (Orical)