SEC Files Case Against Backswing Ventures and CEO Kyle Asman for Alleged Investor Misleading

SEC Alleges Multi-Year Investor Misleading The Securities and Exchange Commission filed a case in the Middle District of Florida alleging that Backswing Ventures and its CEO Kyle Asman misled investors in a private fund over a multi-year period.

The case covers conduct that lasted from at least February 2020 through April 2023. Investmentnews first reported the SEC case. The SEC alleges that the manager of Backswing Ventures LP took in more than $515,000 in management fees in the fund's first year.

These management fees exceeded what the offering materials allowed. Benzinga reported on the case details.

Backswing Ventures Background Backswing Ventures LP, also referred to as Backswing Ventures Fund I, LP, is a Delaware partnership formed by Kyle Asman to back early-stage businesses.

The fund invests in areas such as defense, commercial real estate, technology, data, and health care. Backswing's limited partnership agreement informed investors that Backswing and Kyle Asman had broad discretion to manage the fund.

Backswing's Response to Allegations Backswing argues that the allegations related to the mismarketing of assets and the collection of management fees are expressly false.

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 ...”