In its latest step to elevate antitrust scrutiny of private equity, DOJ launches a series of investigations of board seats under Section 8 of the Clayton Act.

The US Department of Justice (DOJ) recently began sending confidential investigation letters to private equity (PE) sponsors and portfolio companies regarding “interlocking directorate” issues under Section 8 of the Clayton Act (Section 8). In several cases, the DOJ has sent major PE sponsors “civil investigative demands” (subpoenas) for documents and information regarding the sponsor’s structure, holdings, and board representations, without limitation as to any particular transaction.