November 2011 Issue

Private equity compliance officers have a tough task ahead of them in getting portfolio companies up to speed with US and UK anti-corruption legislation, according to a new survey from Kroll.  

Financial sponsors are facing fewer claims against the pot of money held in reserve by buyers to ensure private equity sellers fully satisfy a purchase agreement, though certain risks remain.

Board members and executive staff of California’s two largest pension systems now face tough restrictions on their post-pension employment.

The global investment bank is rebranding the way it markets fund administration services to Asia-Pacific clients, in part by hiring a dedicated client manager for the alternatives sector.  

The Chinese government has released a circular on RMB cross-border foreign direct investment, in effect providing RMB funds raised offshore a clearer path into mainland investment opportunities.

EU regulators have kicked off a consultation period asking how Solvency II, an insurance regulatory framework chastised for not understanding the private equity model, could be applied to European pensions.

Private equity managers cited difficulty complying with new regulations, according to a KPMG survey. Managers also reported a dim view on the economy and the fundraising environment.

Certain private equity firms have just months left to comply with a new US rule designed to track ‘large traders’.

Following strong criticism from the private equity industry, the US Securities and Exchange Commission has watered down reporting requirements which will provide the agency its first window into buyout firms.  

A private equity-backed company is the first to be granted an ABS license under the so-called ‘Tesco law’, a bill which could drastically change the way buyout firms engage with the legal sphere.

A US government-backed task force made up of private sector professionals is calling for the creation of a relaxed regulatory “On-Ramp” small businesses can use in order to rejuvenate a quelled IPO market.

Brown Rudnick, Goodwin Proctor, SJ Berwin, Wilson Sonsini and Reed Smith are among the groups that have recently hired or promoted professionals as law firms continue to battle for talent.

As private equity firms respond to unprecedented regulatory oversight and expand their investment focus to a broader group of industries, demands placed on legal advisors have increased in kind. In this Q&A, Manatt, Phelps & Phillips partners Masood Sohaili and Eric Newsom discuss what qualities today’s private equity lawyer needs to win GPs’ attention.

Tax authorities across Europe are rethinking their playbooks -calling into question how private equity houses shift income and gains across jurisdictions and whether GPS are paying their fair share in taxes.

New Silk Route has been dealing with the scandal involving its co-founder, Rajat Gupta, all year. This week the US FBI arrested and charged him with insider trading.

A more competitive and crowded market is driving some GPs in China and India to work on their ‘value add’.

As analysts and lawyers continue to parse through recently released Volcker rule proposals, little has been said about the virtually impossible task banks have been left with in complying with its provisions by next July.