Funds will be audited, within two years of registration.
Visits are unannounced. According to Benjamin Bornstein, whose
firm Prospero Capital was audited, the agency sends two
examiners, who spend about a week examining records. The SEC
will then write to the firm with suggested improvements. These
recommendations tend to be fairly benign if the firm has kept
its books and records accurate and is prepared for a surprise
visit. One manager said that after a visit, the SEC sent his