The Securities and Exchange Commission (SEC) is alleging that Florida-based venture capital firm Backswing Ventures and its CEO Kyle Asman misled investors in a private fund over a multi-year period.
The case was filed in the Middle District of Florida and covers conduct the SEC says lasted from at least February 2020 through April 2023, Investmentnews first reported.
At the center of the complaint is Backswing Ventures LP, also referred to as Backswing Ventures Fund I, LP, a Delaware partnership Asman formed to back early-stage businesses spanning areas such as defense, commercial real estate, technology, data and health care. The SEC alleges the manager took in more than $515,000 in management fees in the fund’s first year, far more than what the offering materials allowed.
Backswing argues that the allegations related to the mismarketing of assets and the collection of management fees are “expressly false,” given that Backswing’s limited partnership agreement informed investors that Backswing and Asman had broad discretion to manage the fund.
A spokesperson from Backswing provided additional information to Benzinga, clarifying some details of the SEC’s allegations.
“The purported management fees are actually legal fees that the Fund paid relative to this SEC inquiry, and per the LPA, the Fund was permitted to pay any and …
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