Private Funds and ESG: Investment, Reporting and Disclosure Issues; Industry Protocols
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine evolving best practices regarding environmental, social, and governance (ESG) fund investment for asset managers. The panel will discuss ESG reporting and disclosure frameworks recently established by the EU, guidance from U.S. regulators, and ESG investment and reporting protocols currently employed in the investment community.
Outline
- Emergence of ESG as a business model for investment funds
- Disclosure and reporting obligations for ESG funds
- New EU disclosure obligations: EU Non-Financial Reporting Directive (2014/95/EU)
- SEC risk alert
- Designing and implementing an ESG investment strategy
- Positive and negative screening
- Sources of ESG data on companies
- Engagement with portfolio companies: proxy voting
Benefits
The panel will review these and other important issues:
- What are an asset manager's disclosure obligations when marketing a fund as an ESG-oriented investment fund?
- When might the new EU Non-Financial Reporting Directive (2014/95/EU) apply to a U.S.-based asset manager?
- How should an asset manager evaluate the ESG performance of companies in which it looks to invest?
- What are best practices for ongoing engagement with portfolio companies which have been designated as ESG investments?
Faculty
Vadim Avdeychik
Of Counsel
Paul Hastings
Mr. Avdeychik counsels mutual funds, closed-end funds, exchange-traded funds, business development companies (BDCs),... | Read More
Mr. Avdeychik counsels mutual funds, closed-end funds, exchange-traded funds, business development companies (BDCs), hedge funds, and their investment advisers. He routinely advises on the formation and operation of registered investment companies (including those implementing alternative investment strategies), alternative fund structures (including registered and unregistered master/feeder and fund-of-funds structures and BDCs), fund governance, regulatory issues involving public and private funds, and investment company status issues. Mr. Avdeychik has extensive experience assisting pre-IPO and public operating companies, specialty finance companies, investment banks, financial product sponsors, and other entities in determining their investment company status or the status of the products they sponsor, including the ability to qualify for exemptions from the Investment Company Act, in connection with securities offerings, financial product launches and other transactions. He also has transactional experience concerning funds and their advisers, including merger and acquisition transactions.
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Debra Franzese
Partner
Seward & Kissel
Ms. Franzese works with sponsors and managers of various private investment funds and other pooled investment vehicles,... | Read More
Ms. Franzese works with sponsors and managers of various private investment funds and other pooled investment vehicles, including hedge funds, private equity funds, funds of funds, commodity pools, co-investment vehicles and various “hybrid” funds. In particular, she focuses on fund formation and structuring, the offering of interests by private investment funds, and the negotiation and documentation of such investments. Ms. Franzese has experience in organizing both domestic and offshore partnerships and other investment vehicles, including separately managed accounts established for institutional investors. She has significant experience advising clients regarding regulatory and compliance matters, including the availability of exemptions from registration for both U.S. and non-U.S. investment advisers, the development of compliance policies and procedures, the completion of regulatory filings, and assistance with regulatory examinations. Ms. Franzese also represents investment advisers in connection with seed-capital investments and side letters and represents funds of funds and other institutional investors in connection with their investments in private funds. She was instrumental in the formation of the firm’s ESG practice, spearheading a task force dedicated to staying at the forefront of the ESG issues affecting investment managers.
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Alexandra Poe
Partner
Hughes Hubbard & Reed
Ms. Poe has over 25 years of experience in investment management practice, representing investment advisers and... | Read More
Ms. Poe has over 25 years of experience in investment management practice, representing investment advisers and institutional investors. She counsels private equity, venture, and hedge fund advisers in all stages of their business, including fund formation, domestic and cross-border structuring, adviser registration, compliance program development, compliance training and advice, governance and fiduciary issues, closed-end fund registration and compliance, placement arrangements, marketing, client relations, side letter and seeding arrangements, implementation of liquidity strategies, blockchain utilization, and day-to-day trading and operations advice. Ms. Poe also advises clients as key or strategic investors in private funds, and in sponsoring or participating in managed account programs or other bespoke investment service platforms. Further, she has represented financial industry clients in connection with mergers and acquisitions, strategic joint ventures, regulatory examinations, implementation of prosecutorial settlement agreements, governance matters and due diligence.
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