In its final Private Fund Adviser Rules adopted last year, the SEC dropped one of the more controversial proposed rules—the proposal to prohibit contractual exculpation or indemnification provisions that would shield or...more
4/16/2024
/ Anti-Fraud Provisions ,
Compliance ,
Enforcement ,
Fiduciary Duty ,
Indemnification ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Negligence ,
Private Funds ,
Releases ,
Securities and Exchange Commission (SEC)
ESG continues to be a hot topic for 2024 for investors and regulators alike. The specific concerns investors and regulators have – and what they expect to develop over the coming months – differ, however, across...more
4/1/2024
/ Breach of Duty ,
Disclosure Requirements ,
Enforcement ,
Environmental Social & Governance (ESG) ,
EU ,
Fiduciary Duty ,
Financial Statements ,
Form 10-K ,
Greenhouse Gas Emissions ,
Greenwashing ,
Investors ,
Jurisdiction ,
Proposed Rules ,
Regulation S-K ,
Regulation S-X ,
Regulatory Agenda ,
Sustainability ,
UK
It’s a pattern we often see in boom-and-bust cycles—disputes rising in the period after a wave crests. SPAC deal volume hit an unprecedented high in 2021, but then slowed down in 2022 alongside IPOs. However, the fallout from...more
The SEC’s Enforcement Division is conducting a sweep investigation of large investment advisers regarding their employees’ use of “off-channel” communications. The sweep, which has been widely reported in the press, focuses...more
4/25/2023
/ Asset Management ,
Breach of Duty ,
Compliance ,
Enforcement Actions ,
Fiduciary Duty ,
Investigations ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Private Funds ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC)
As our other Top Ten posts have demonstrated, there is no shortage of risks for private fund sponsors to navigate in today’s economic and regulatory environment. Nevertheless, they need to prioritize the risk that hits...more
6/2/2022
/ Asset Management ,
Breach of Duty ,
Business Litigation ,
Commercial Litigation ,
Fiduciary Duty ,
Fraud ,
Fund Sponsors ,
Investment ,
Investment Funds ,
Investment Portfolios ,
Private Equity
As litigation claims against portfolio companies have increased, so have accompanying claims asserted directly against funds (and their sponsors). Plaintiffs’ reasoning for including funds as defendants is no mystery: funds...more
Private funds frequently negotiate for special rights when making an investment in a portfolio company, such as the right to appoint one or more board directors, voting rights, and liquidation preferences. Fund sponsors often...more
COVID-19 continues to disrupt normal business operations, creating liquidity problems and negative working capital for many companies. As fund sponsors take actions to help their portfolio companies navigate through this...more
Over the last few years, we have seen an uptick in litigation claims against sponsors and funds arising out of their interests in portfolio companies. A fund sponsor’s participation on a portfolio company board, in...more
Many portfolio companies continue to confront business disruptions as a result of the COVID-19 pandemic. Even prior to the pandemic, we were seeing an uptick in litigation claims against sponsors and funds arising out of...more
8/25/2020
/ Business Interruption ,
Coronavirus/COVID-19 ,
Corporate Financing ,
Corporate Governance ,
Fiduciary Duty ,
Fund Sponsors ,
Insolvency ,
Liquidity ,
Portfolio Companies ,
Private Equity ,
Private Equity Firms