Private Fund Management During the Pandemic: Investment, Distribution, Governance, and Fund Finance Concerns

Interacting With Investors, Lenders, and Regulators in the Current Environment

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


Conducted on Thursday, June 4, 2020

Recorded event now available

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Program Materials

This CLE webinar will examine the critical issues that private fund managers should consider in managing funds and fund investments during the COVID-19 epidemic. The panel will discuss actions which managers should take now with regard to their investors, lenders, and regulators.

Description

The COVID-19 epidemic and its economic fallout will impact private investment funds and their investment managers in a variety of ways. Managers of both closed-end and open-end funds must assess the impact these events will have on investments and fund operations and determine the next steps to take concerning their investors and lenders.

Fund managers should review private placement memoranda, partnership agreements, or other operating agreements, investment management agreements, subscription documents, and related documentation to understand the standard of care imposed on them. They should determine when distributions to investors are required, when they can be suspended or delayed, when reserves may be held, and when alternatives to cash may be distributed.

Counsel must know the operational differences that may exist between their various fund entities and types of fund products. They may need to satisfy different requirements to suspend withdrawals or redemptions. In addition to addressing concerns about a fund's investor relations and governance, the manager will need to monitor the fund's portfolio.

Funds relying on subscription and other lines of credit will want to be in close contact with lenders to ensure there are no unexpected interruptions in their ability to draw down on lines and access capital to make investments, fund expenses, or otherwise operate their funds. Responding to routine or special inquiries from the SEC or other regulatory bodies should be dealt with in the ordinary course. Still, special considerations apply in the context of a fund under duress.

Listen as our authoritative panel examines these and other fund management issues presented by the COVID-19 outbreak.

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Outline

  1. Implications of COVID-19 for managers of PE funds, hedge funds, and other private funds
  2. Fundraising considerations
  3. Fund management considerations
  4. Assessing and responding to liquidity issues and withdrawal requests
  5. Portfolio company issues: managing fiduciary duties to portfolio companies and fund investments

Benefits

The panel will review these and other relevant topics:

  • What are key provisions counsel should be reviewing in partnership agreements, investment management agreements, and other key documents?
  • What steps should fund managers take concerning outstanding credit facilities?
  • What are key concerns for portfolio companies in distress?
  • How might SEC and other reporting requirements be affected by the current pandemic?

Faculty

Beber, Howard
Howard J. Beber

Partner
Proskauer Rose

Mr. Beber is a partner in the Corporate Department and co-head of the Private Funds Group, which is recognized by...  |  Read More

Hackett, Michael
Michael R. Hackett

Partner
Proskauer Rose

Mr. Hackett is an experienced litigator and trial lawyer focused on sophisticated business disputes. A significant...  |  Read More

Kustin, Ira
Ira P. Kustin

Partner
Paul Hastings

Mr. Kustin is a partner in the Investment Management practice. He focuses his practice on advising sponsors of, and...  |  Read More

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