As part of an ongoing series of articles that focus on the top regulatory and litigation risks for private funds in 2021, William C. Komaroff, Seetha Ramachandran and Joseph Hartunian write for Bloomberg Law on the return to civil and
The Capital Commitment
Proskauer on Private Fund Litigation
The Capital Commitment, published by Proskauer Rose LLP, focuses on legal issues affecting private capital markets, including private funds, private equity, and private credit. The blog covers regulatory and litigation risks, SEC enforcement actions, compliance challenges, and market trends impacting fund managers and investors. Topics include SEC rulemaking, whistleblower regulations, cryptocurrency and blockchain-related securities matters, ESG compliance, and the effects of macroeconomic changes on private capital. It also addresses corporate governance, investment management, and transactional developments relevant to private capital stakeholders.
Latest from The Capital Commitment - Page 12
Space SPAC Draws SEC Enforcement Action for Allegedly Misleading Disclosures and Due Diligence Failures
As one of the first of an expected series of potential enforcement actions, the SEC has brought an enforcement action against a SPAC and its major participants, highlighting enhanced regulatory scrutiny of SPACs and underscoring the importance of following appropriate…
The Portfolio Company Playbook: Chapter 4 – Navigating Direct Liability Risks to the Fund
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 often have greater financial resources than the defendant portfolio company,…
Three Key Considerations for Fund Sponsors when Participating in Bankruptcy Proceedings
We anticipate a more assertive regulatory enforcement program under the Biden administration, particularly focused on fund managers’ conflicts of interest, advisers’ codes of ethics, and related policies and procedures relating to material nonpublic information. These concerns may be heightened for…
SEC Increases Advisers Act Qualified Client Thresholds
Registered advisers should take note that on June 17th, the SEC adjusted the dollar amount thresholds for clients of registered advisers to be deemed to be “qualified clients” under rule 205-3 of the Investment Advisers Act of 1940, which permits…
SPACs: Sure, Proceedings Are Coming
Proskauer’s Asset Management Litigation partner Dorothy Murray recently authored an article on litigation risks of SPACs.
Dorothy details why the recent popularity of this latest incarnation of so-called “blank cheque” companies will inevitably lead to disputes, and the reasons are…
The Portfolio Company Playbook – Chapter 3: Navigating Risk from Company Employee Claims
Another source of litigation risk for fund sponsors are claims brought by portfolio company employees. Sponsors should be aware of these risks, particularly when the portfolio company is in distress or is considering a sale or other transaction affecting the…
Navigating Brexit: What Funds Should Look Out for as the Dust Begins to Settle
By Margaret A. Dale, Michael R. Hackett, Kirsten E. Lapham, William Komaroff, Timothy W. Mungovan, Dorothy Murray, Joshua M. Newville, Todd J. Ohlms, Seetha Ramachandran, Ana Vermal, Samuel J. Waldon, Jonathan M. Weiss, Anthony M. Drenzek, James Anderson, William D. Dalsen, Adam L. Deming, David W. Heck, Hena M. Vora & Lucy C. Wolf
As a result of Brexit, UK-regulated firms will already have grappled with loss of passporting and equivalence measures, and the need to navigate national regimes and relocate staff. As of today, EU firms operating in the UK have a temporary…
Private Credit Lenders Should Remain Vigilant in 2021
By Margaret A. Dale, Michael R. Hackett, Kirsten E. Lapham, William Komaroff, Timothy W. Mungovan, Dorothy Murray, Joshua M. Newville, Todd J. Ohlms, Seetha Ramachandran, Ana Vermal, Samuel J. Waldon, Jonathan M. Weiss, Anthony M. Drenzek, James Anderson, William D. Dalsen, Adam L. Deming, David W. Heck, Hena M. Vora & Lucy C. Wolf
Private credit lenders began 2020 facing the dual challenges of an increased risk of defaults and a lack of strong financial covenants, and the pandemic sparked a significant increase in defaults to 8.1% in Q2. However, borrower defaults in Q3 and…
Focus on ESG Will Continue to Grow Under Biden Administration
By Margaret A. Dale, Michael R. Hackett, Kirsten E. Lapham, William Komaroff, Timothy W. Mungovan, Dorothy Murray, Joshua M. Newville, Todd J. Ohlms, Seetha Ramachandran, Ana Vermal, Samuel J. Waldon, Jonathan M. Weiss, Anthony M. Drenzek, James Anderson, William D. Dalsen, Adam L. Deming, David W. Heck, Hena M. Vora & Lucy C. Wolf
In 2021, the global impact of environmental, social and corporate governance (“ESG”) investing will continue to grow, with key implications for the asset management industry. The new European regime on sustainability-related disclosures in the financial sector will roll out in…