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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    ERISA

Date & Time
  • event Date

    Thursday, October 5, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will prepare counsel representing private equity funds and private equity professionals to meet the challenges under ERISA that apply to fund managers who are responsible for investing the assets of a fund that holds ERISA plan assets. The program will cover the impact on private equity firms of court rulings discussing specific joint and several liabilities under ERISA plans.

Faculty

Carol I. Buckmann
Partner
Cohen & Buckmann, PC

Ms. Buckmann has advised global employers on U.S. and cross-border employee benefit matters for over 35 years. She focuses her practice on employee benefits and ERISA, dealing with some of the foremost issues in ERISA, including pension plan compliance, fiduciary responsibilities and investment fund formation. She has significant experience with complex pension law and fiduciary problems. 

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Sarah E. Downie
Partner
Weil Gotshal & Manges LLP

Ms. Downie has extensive experience in the executive compensation and employee benefits aspects of M&As and financings. She represents senior executives and companies in the negotiation and drafting of employment and severance agreements. Ms. Downie also advises as to the design and operation of executive and employee benefit arrangements. In addition, Ms. Downie regularly advises employers on the design and operation of tax-qualified retirement plans as well as health and welfare benefit plans.

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Description

ERISA imposes fiduciary obligations in connection with funds that hold "plan assets" subject to ERISA on private equity managers responsible for investing fund assets. To avoid becoming subject to ERISA's fiduciary requirements, funds must structure their investments to comply with an exception to ERISA's "plan asset" rules. If the funds are intended or required to be subject to ERISA, ERISA's requirements will affect fund operations in many ways.

Also, specific ERISA plans carry significant joint and several liabilities for all companies that are part of a "controlled group" under the Internal Revenue Code and ERISA that maintains such plans. Funds should identify such ERISA plans in due diligence before purchasing a portfolio company that sponsors such a plan and structure their investments to minimize the risk that these liabilities will become liabilities of the fund.

Listen as our authoritative panel of finance attorneys discusses the fiduciary obligations under ERISA that apply to private equity fund managers responsible for investing the assets of a fund that holds ERISA plan assets. The panel will focus on the duty to avoid prohibited transactions, relevant case law, and implications of the current state of the fiduciary rule.

Outline

  1. ERISA fiduciary duties applicable to private equity managers
    • Exceptions available to private equity funds
    • Penalties and personal liability under ERISA
  2. Joint and several liability under ERISA
  3. Structuring investments with pension obligations

Benefits

The panel will review these and other crucial issues:

  • What fiduciary duties does ERISA impose on private equity managers who invest fund assets that hold ERISA plan assets?
  • How can fund managers take advantage of the exceptions to the ERISA plan asset rules?
  • What types of ERISA plans carry joint and several liability?
  • What are the implications of court rulings on private equity funds and their portfolio companies?