The Role of Legal and Compliance in Adapting PE Investment Strategies During Market Disruptions

When it began a year ago, the pandemic completely altered the private equity industry’s perception of the strength of businesses and industries. Special situations, distressed debt and communications software became hot sectors, while others (consumer, restaurants, etc.) languished. As private equity investment professionals rushed to take advantage of unforeseen opportunities outside their funds’ investment mandates, general counsel and chief compliance officers were asked to pave the way for those new investments. Whether modifying existing funds’ investment strategies or rapidly launching new funds, legal counsel and compliance officers were forced to react nimbly, navigate unforeseen issues and advise investment committees on how best to proceed.

That experience provided valuable lessons for when GCs and CCOs confront the next major market disruption, while also revealing certain prophylactic measures that can be taken to allow adaptability in the future. Those lessons will be the topic of a complimentary webinar cohosted by the Private Equity Law Report and LexisNexis.

The webinar will explore various issues, including:

• Ways the pandemic forced managers to confront limitations of their funds’ current investment strategies and investors to reconsider their investment options
• Pre-considerations for managers as they evaluate opportunities outside their investment mandates
• Modifications general partners and limited partners can make to their existing fund arrangements (amending fund documents, employing co investments, etc.) to thrive amidst market disruptions
• New fund structures general partners and limited partners can pursue (deal-by-deal funds, separately managed accounts, single investor funds, etc.) to nimbly pursue previously uncontemplated investments
• Drafting considerations for new fund documents to allow GPs and LPs future investment flexibility
• The role of bespoke investment vehicles in changing market conditions

Investment management Partner Christopher J. Dlutowski will participate as a panelist.