News & Analysis as of

Private Equity Funds Employee Retirement Income Security Act (ERISA)

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

DOL issues caution on private equity investments

The Department of Labor (DOL) has cautioned plan fiduciaries about private equity investments as components of investment options, such as target-date or balanced funds. ...more

McDermott Will & Emery

DOL: Path for 401(k) Plans to Offer Private Equity Investment Options

McDermott Will & Emery on

The US Department of Labor (DOL) issued an information letter in June 2020 indicating that, in limited circumstances, it will allow defined contribution retirement plans (such as 401(k) plans) to indirectly invest in private...more

Epstein Becker & Green

DOL Provides Guidance for Private Equity Investments in 401(k) Plans

Epstein Becker & Green on

Employers that are fiduciaries of participant-directed individual account plans (such as 401(k) plans) subject to the Employee Retirement Income Security Act of 1974, as amended (‘Plans” and “ERISA”, respectively) should be...more

Burr & Forman

DOL Cracks Open the Door for Private Equity in 401(k) Plans

Burr & Forman on

The U.S. Department of Labor (the “DOL”) recently released an information letter that concludes, if certain conditions are met, a plan fiduciary will not violate his fiduciary duties under the Employee Retirement Income...more

Latham & Watkins LLP

DOL: Plan Fiduciaries Can Include Private Equity Investment Options for Defined Contribution Retirement Plans

Latham & Watkins LLP on

New DOL information letter sheds light on how US defined contribution retirement plans (such as 401(k) plans) may offer private equity investments in compliance with ERISA. Key Points: ..Private fund sponsors and “fund of...more

Goodwin

DOL Release May Increase ERISA Defined Contribution Plan Interest in Private Equity Investments

Goodwin on

On June 3, 2020, the U.S. Department of Labor issued an information letter concluding that a plan fiduciary would not violate ERISA’s fiduciary duties solely because the fiduciary offers a professionally managed asset...more

King & Spalding

Compensation and Benefits Insights – April 2020

King & Spalding on

On November 22, 2019, the U.S. Court of Appeals for the First Circuit (the “First Circuit”) reversed the 2016 decision of the U.S. District Court for the District of Massachusetts (the “District Court”) in Sun Capital...more

Jones Day

Private Equity Update: 1st Circuit Reverses Imposition of Pension Plan Withdrawal Liability

Jones Day on

The Multiemployer Pension Plan Amendments Act of 1980 ("MPPAA") amended the Employee Retirement Income Security Act of 1974 ("ERISA") and the Internal Revenue Code to make "trade[s] or business[es]" that are under "common...more

Latham & Watkins LLP

Viewpoints: Portfolio Company Pension Liabilities

Latham & Watkins LLP on

New York partner Bradd Williamson, Global Chair of Latham’s Benefits, Compensation & Employment Practice, and Chicago partner Robin Struve discuss Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry...more

Katten Muchin Rosenman LLP

Recent Sun Capital Decision Provides Welcome Relief but Leaves Uncertainty

Key Points - The US Court of Appeals for the First Circuit reversed a lower court decision which held that two affiliated private equity funds with indirect ownership interests in the same portfolio company were liable for...more

Holland & Knight LLP

Private Investment Funds Not Liable for Portfolio Company's Pension Withdrawal Liability

Holland & Knight LLP on

The U.S. Court of Appeals for the First Circuit has held in Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry Pension Fund that two Sun Capital Funds were not under common control with Scott Brass...more

A&O Shearman

First Circuit Finds That Funds Were Not Liable for Portfolio Company’s Pension Fund Withdrawal Liability

A&O Shearman on

On November 22, 2019, the United States Court of Appeals for the First Circuit held that two separate private equity funds managed by the same general partner/management firm were not liable for the pension fund withdrawal...more

Dechert LLP

Some Less Egregious Aggregation? – First Circuit Reverses the District Court in Sun Capital Partners

Dechert LLP on

The recent decision by the U.S. Court of Appeals for the First Circuit in the Sun Capital Partners case may allay some of the concerns that private-equity and other investment funds that acquire or invest in portfolio...more

White & Case LLP

In Limited Ruling, Sun Funds Avoid Liability for Portfolio Company Pension Obligations

White & Case LLP on

First Circuit: Two affiliated funds did not form an implied partnership liable for pension obligations of a portfolio company, but private equity funds can still be subject to controlled group pension liability...more

Akin Gump Strauss Hauer & Feld LLP

Appellate Court Reverses District Court’s Finding Private Equity Funds Liable for Portfolio Company’s Withdrawal Liability on...

On November 22, 2019, the U.S. Court of Appeals for the First Circuit in Sun Capital Partners III, LP v. New England Teamsters and Trucking Industry Pension Fund (1st Cir., No. 16-1376, Nov. 22, 2019) (“Sun Capital IV”)...more

Seyfarth Shaw LLP

First Circuit Rules that Private Equity Funds Not Liable for Portfolio Company’s Multiemployer Plan Withdrawal Liability

Seyfarth Shaw LLP on

In a decision published on November 22, 2019, the First Circuit reversed a district court’s prior decision and held two Sun Capital private equity funds were not liable for the withdrawal liability incurred when a...more

McDermott Will & Emery

Finally! First Circuit Overturns the Sun Capital ERISA Multiemployer Plan Liability Case—But Risks Remain for Private Equity

McDermott Will & Emery on

The First Circuit issued a decision holding that two private equity funds involved in a case are not required to pay for the withdrawal limit of a portfolio company. Despite the limited victory, the guiding rule with respect...more

Faegre Drinker Biddle & Reath LLP

First Circuit Hands Down Significant Private Equity Ruling in Sun Capital Litigation

In an important decision, the U.S. First Circuit Court of Appeals recently ruled that two separate but related private equity funds – Sun Capital Partners III and Sun Capital Partners IV – are not jointly and severally liable...more

Proskauer - Employee Benefits & Executive...

Sun Capital Update: First Circuit Reverses District Court’s “Partnership-in-Fact” Holding and Finds Private Equity Funds Not Part...

Last Friday, the U.S. Court of Appeals for the First Circuit ruled that two co-investing Sun Capital private equity funds (the Sun Funds) had not created an implied “partnership-in-fact” for purposes of determining whether...more

K&L Gates LLP

Together but Separate: First Circuit Holds Private Equity Funds are Not Liable for Portfolio Company Pension Obligations

K&L Gates LLP on

Private equity sponsors recently won a significant court victory that may result in increased appetite for transactions involving companies with unionized workforces. ...more

Seyfarth Shaw LLP

First Circuit Rules That Private Equity Funds Are Not Responsible For Portfolio Company Withdrawal Liability

Seyfarth Shaw LLP on

Seyfarth Synopsis: In a long-awaited decision with significant impact for the private equity industry, in Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry Pension Fund, the United States Court of...more

Skadden, Arps, Slate, Meagher & Flom LLP

Recent Sun Capital Decision Reverses Lower Court's Ruling That Funds Are Liable for a Portfolio Company's Withdrawal Liability

The First Circuit, however, disagreed with the lower court. Analyzing the multi-factor test for establishing partnership status under federal tax court precedent and noting the lack of other formal guidance from regulators or...more

Proskauer - The Capital Commitment

Proposed Senate Bill Would Significantly Impact Certain Private Funds and Their Affiliates

Recently, a group of Congress members introduced into Congress Senate Bill 2155 named the Stop Wall Street Looting Act of 2019. Although unlikely to be enacted into law as drafted, this proposed legislation would directly and...more

Proskauer Rose LLP

Sun Capital Redux: Private Equity Fund Seeks Declaratory Judgment on Controlled Group Liability for Portfolio Company's Pension...

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In light of the recent decisions by the U.S. Court of Appeals for the First Circuit and the U.S. District Court for the District of Massachusetts in Sun Capital, private investment funds, multiemployer pension funds and the...more

Akin Gump Strauss Hauer & Feld LLP

Investment Management Special Report - 2017-18 Compliance Developments & Calendar for Private Fund Advisers

Introduction - Despite an anticipated de-regulatory push, there are significant new regulatory concerns for investment advisers to address in connection with their annual review of their compliance manuals. ...more

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