Abstract
This study assesses the effects of Dodd-Frank Act compliance costs on the private fund industry. Using hand-selected compliance cost estimates from private fund advisers (N=94) the study shows with two independent datasets that the number of funds managed by private fund advisers is associated with Dodd-Frank Act compliance cost. The size of registered private fund advisers as measured by assets under management is not associated with the per-unit cost of Title IV compliance and other independent variables as proxies for cost. These findings are consistent with the hypothesis that the cost of financial regulation under the Dodd-Frank Act brings increasing returns to scale. Private fund advisers' use of single versus multiple investment strategies does not have an effect on Title IV compliance costs