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 firm...