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 premium CLE webinar with Q&A
This CLE course 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.
Outline
- Fund restructuring trends
- Sponsor fiduciary duties and conflicts of interest
- Options for existing investors
- New fund terms
- Distribution waterfalls
- Additional capital
- New investments
- Governance, reporting, voting
- 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
Michael D. Belsley
Partner
Kirkland & Ellis
Mr. Belsley's practice involves structuring, negotiating and documenting complex business transactions, including... | Read More
Mr. Belsley's practice involves structuring, negotiating and documenting complex business transactions, including strategic and leveraged acquisitions, recapitalizations and divestitures, formation and governance of private equity funds (including primary investments in and secondary market sales of private equity fund interests), venture capital investments, mezzanine debt financings, equity financings and corporate governance matters. He regularly represents buyers and sellers, as well as market intermediaries, in their secondary market activities. His secondary market experience includes traditional portfolio sales, structured secondaries, synthetic secondaries, captive fund spin-outs, stapled secondary offerings, fund recapitalizations and restructurings, follow-on funding secondaries and orphaned asset sales in a variety of asset classes, including the venture capital, leveraged buy-out, special situations and real estate sectors. He also frequently represents both private equity fund sponsors and investors in private equity fund formations, fund-level restructurings and governance matters.
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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
Mr. Samman’s practice focuses on the domestic and international private investment funds industry, representing fund sponsors in connection with the organization, structuring and operation of private investment funds, including private equity funds, real estate funds, venture capital funds, fund of funds, secondary funds and hedge funds. He also advises institutional investors in connection with their investments in private investments funds, including the acquisition and sale of those investments on the secondary market.He also represents his investment fund clients in connection with their investment activity, including leveraged buyouts, joint ventures and minority equity investment transactions.
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Aaron Schlaphoff
Partner
Kirkland & Ellis
Mr. Schlaphoff’s practice focuses on complex regulatory, compliance and structuring matters for sponsors of a... | Read More
Mr. Schlaphoff’s practice focuses on complex regulatory, compliance and structuring matters for sponsors of a wide range of investment vehicles, including both private funds and registered funds. Prior to joining Kirkland, Mr. Schlaphoff was most recently an attorney fellow in the Division of Investment Management at the U.S. Securities and Exchange Commission. At the SEC, Mr. Schlaphoff advised various SEC divisions and offices, including OCIE and Enforcement, on interpretive matters under the Advisers Act, as well as on market practice in the private equity and hedge fund industries. In addition, he contributed to a diverse range of policy and legal matters relating to investment advisers and investment vehicles subject to SEC regulation, including liquid alternative mutual funds, closed-end funds and ETFs.
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