It is now no longer uncommon that as a condition to approving the transfer of a limited partner ("LP") interest in a private fund, the general partner ("GP") of such fund may seek a stapled primary commitment to its newest...more
For the investment teams of pension funds, endowment funds, family offices and similar institutional investors investing in private funds, barely a week goes by without their inboxes filling up with a long election booklet...more
Private equity and other illiquid private market investment funds have become increasingly relevant to pension fund investors in recent years as they have sought to diversify a minority proportion of their portfolios away...more
Private equity funds have, in the past, run dual track exit processes in which an exit by way of initial public offering (“IPO”) or direct auction sale have been simultaneously pursued. Whilst the IPO markets are, for the...more
The Institutional Limited Partners Association (ILPA) released considerations for both limited partners (LPs) and general partners (GPs) in respect of continuation fund transactions, including GP-led secondaries, in May 2023....more
On 2 May 2019, the U.S. Treasury's Office of Foreign Assets Control ("OFAC"), the agency responsible for enforcing economic sanctions, published "A Framework for OFAC Compliance Commitments" (the "Framework") which outlines...more
7/3/2019
/ Cooperative Compliance Regime ,
Economic Sanctions ,
Failure to Comply ,
Foreign Policy ,
Foreign Relations ,
Framework Agreement ,
Fund Managers ,
Internal Controls ,
Investment Funds ,
Investment Management ,
Office of Foreign Assets Control (OFAC) ,
Private Equity ,
Risk Assessment ,
Sanction Violations
Proposed regulations have recently been issued by the U.S. Internal Revenue Services (IRS) under a withholding provision of U.S. tax law enacted in 2017 that imposes withholding tax on a non-U.S. person’s sale (or other...more
Could private equity funds be liable for human rights breaches by a portfolio company? A recent decision by the UK Supreme Court increases the likelihood of this outcome. This blog looks at the judgment in Vedanta Resources...more
5/16/2019
/ Corporate Liability ,
Due Diligence ,
Duty of Care ,
Environmental Claims ,
Human Rights ,
Mining ,
Parent Corporation ,
Popular ,
Portfolio Companies ,
Private Equity Funds ,
Risk Management ,
Subsidiaries ,
UK ,
UK Supreme Court ,
Zambia
GP-led Fund Restructurings have become an increasingly important part of the private equity secondaries market, accounting for 40% of 2018's US$70 billion secondaries activity according to ILPA....more
The UK Government has been consulting on a new regime which will grant it wide powers to intervene in deals on grounds of national security. The consultation period in relation to the Government's proposals has recently...more
Identifying Bribery and Corruption risk in the context of private equity investments (and M&A more generally) is key to ensuring the value of an acquisition. Companies will busy themselves with due diligence on tax,...more
Identifying Bribery and Corruption risk in the context of private equity investments (and M&A more generally) is key to ensuring the value of an acquisition. Companies will busy themselves with due diligence on tax,...more
A number of very significant changes are being made to the UK anti-money laundering regime.
Of particular interest to the private equity industry will be the proposed new criminal offence of failure to prevent the...more
1/30/2017
/ AML/CFT ,
Banking Sector ,
Money Laundering ,
National Crime Agency (NCA) ,
Private Equity ,
Proceeds of Crime Act 2002 (POCA) ,
Risk Assessment ,
Suspicious Activity Reports (SARs) ,
Tax Evasion ,
UK ,
UK Bribery Act
1. Framework for an exit from an SARL -
Prior to 23 August 2016, any transfer of shares to non-shareholders of an SARL was subject to the prior approval of the shareholders holding not less than 75% of the SARL's share...more
1/23/2017
/ Buy-Out Agreements ,
Capital Raising ,
Financial Institutions ,
Jurisdiction ,
Limited Liability Company (LLC) ,
Luxembourg ,
Preferred Shares ,
Shareholder Approval ,
Shareholders ,
Transfer of Assets ,
Venture Capital ,
Voting Rights