Private Equity Fund Restructuring: Negotiating Terms, Avoiding Conflicts of Interest and Avoiding Regulatory Scrutiny

Navigating Sponsor Fiduciary Duties, Options for Existing Investors, and Regulatory Requirements

Recording of a 90-minute CLE webinar with Q&A


Conducted on Wednesday, August 10, 2016

Recorded event now available

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Program Materials

This CLE webinar will discuss the rising trend of restructuring end-of-fund-term and other nonviable private equity funds, developing market practice for fund restructurings, and best practices to negotiate restructuring terms, minimize conflicts of interest and avoid regulatory scrutiny.

Description

Private equity fund restructuring transaction volume was $1.2 billion in 2012 and $1.6 billion in 2013. At the end of 2014, restructuring transaction volume shot up to $6.4 billion, fueled partly because funds raised during the boom years have reached the end of their lifespan and some funds are struggling to deliver returns to investors.

These transactions, however, can be challenging to close as negotiations over restructuring terms are very contentious and these deals are likely to involve conflicts of interest. Restructuring these funds on the secondary market is another common vehicle for dealing with these older funds.

How funds should approach these end-of-fund-term situations is a hot topic for the industry, drawing attention from the SEC, which has plans to draw up guidelines to help private equity firms plan for orderly transition.

Listen as our authoritative panel of finance practitioners discusses developing market trends for private equity fund restructurings and best practices to negotiate restructuring terms, minimize conflicts of interest, and avoid regulatory scrutiny.

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Outline

  1. Fund restructuring trends
  2. Sponsor fiduciary duties and conflicts of interest
  3. Options for existing investors
  4. New fund terms
    1. Distribution waterfalls
    2. Additional capital
    3. New investments
    4. Governance, reporting, voting
  5. SEC regulatory scrutiny

Benefits

The panel will review these and other key issues:

  • What inherent conflicts of interest are present in fund restructuring transactions and what are best practices for minimizing conflicts?
  • What are the legal and business considerations for both sponsors and existing investors in a fund restructuring scenario?
  • What are key fund terms that must be negotiated in a restructuring deal?

Faculty

Belsley, Michael
Michael D. Belsley

Partner
Kirkland & Ellis

Mr. Belsley's practice involves structuring, negotiating and documenting complex business transactions, including...  |  Read More

Fadi G. Samman
Fadi G. Samman

Partner
Akin Gump Strauss Hauer & Feld

Mr. Samman’s practice focuses on the domestic and international private investment funds industry, representing...  |  Read More

Aaron Schlaphoff
Aaron Schlaphoff

Partner
Kirkland & Ellis

Mr. Schlaphoff’s practice focuses on complex regulatory, compliance and structuring matters for sponsors of a...  |  Read More

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