People Moves

Recent turmoil in the credit and subprime mortgage markets has negatively affected a number of private equity deals. Less publicized has been the effect of the turmoil on companies. To that end, we revisit amendments to the US Bankruptcy Code and outline what they mean for private equity sponsors and their distressed portfolio companies.

Tapping the Japanese market for capital requires knowing the unique tax, regulatory and structural preferences of the country's LPs.

The US Congress is taking a close look at alternative investment fund fees. Tax experts say offset structures benefiting LPs are probably safe, whereas popular compensation deferral models for private equity and hedge funds may face legislative assault.

There are no market terms for co-investments – you get what you can negotiate. And in today's market, the balance of power remains on the side of the GPs. Even getting the opportunity to co-invest can be a struggle for LPs.

A GP's fiduciary duty is a supple precept, defined loosely in good times, but prone to be cited in the face of faltering deals. As investment opportunities shift, firms should clarify this duty just in case an unhappy LP cries ‘breach’ in a crowded Delaware courtroom.

Samuel Flax 2008-10-01 Staff Writer <b>CAREER PATH:</b><br />After graduating law school in the early 80s, Flax clerked for a federal judge and then moved at the Washington DC office of Morgan, Lewis & Bockius where he spent one year in energy law before switching to corporate law for a

Boston-based Proskauer Rose follows its clients to London, Paris and São Paulo.

A recipe for a first-time distressed fund operating on the smaller end of the middle market: a strong team, plenty of deal flow and evidence of true operating wherewithal. Having raised a $280 million fund, New York's Monomoy Capital Partners is finding this formula to be quite popular.

FRONTLINE 2008-10-01 Staff Writer Former Tsinghua VC director to lead Trenwith's Asia expansionGregory Hill, formerly a director of Tsinghua Venture Capital Management, has joined the investment banking arm of financial services firm the Trenwith Group, as a managing director.

Most of today's private equity funds boast an eclectic mix of investors, many with their own unique needs. To accommodate them, side letters are often used – but experts suggest side letters be restricted to two issues: disclosure and investment restrictions.