Insight Partners is reportedly paying $1.5M in penalties to settle allegations

 

Insight Partners is reportedly paying $1.5M in penalties to settle allegations of charging excessive management fees and failing to disclose a conflict of interest related to fee calculations.  The New York-based PE and VC firm also agreed to pay its investors $865,000 in disgorgement and interest.  The SEC said that Insight overcharged management fees after failing to readjust the fees to account for a drop in investment value.  Additionally, Insight employed "narrow and subjective" criteria to determine whether to lower fees, resulting in an unreported conflict of interest. The disclosure and management fee discrepancies were for Insight's funds between 2017 and 2021, per SEC.  Insight is one of the largest PE and VC firms with over $79B in assets under management.  Notable bets include Alibaba, Nextdoor, and Twitter.