Private Equity Under Increased Foreign Investment Oversight: New Executive Order, Expanded CFIUS Scrutiny
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Banking and Finance
- event Date
Tuesday, December 5, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will review recent developments in outbound and inbound foreign investment oversight and the impact on private equity. The panel will discuss the Biden Administration's recent release of a long-awaited Executive Order (EO) addressing outbound investments and The Committee on Foreign Investment in the United States' (CFIUS) increased scrutiny of inbound foreign investments in the United States.
Mr. Davis’ practice focuses on U.S. law and policy affecting international trade and business. He advises clients on foreign investment, export controls, sanctions, anticorruption, and customs laws. Mr. Davis’ practice focuses on representing clients in the merger, acquisition and divestiture process before the CFIUS and on accounting for associated risks. He also advises clients in negotiating and implementing CFIUS mitigation agreements, developing and administering international trade compliance programs .and conducting internal investigations.
Mr. Kaniecki’s practice focuses on international trade and national security matters, including CFIUS, economic sanctions, export controls, customs, and trade remedies. He advises clients on international trade and national security issues and foreign direct investment matters, including filing CFIUS notices and negotiating mitigation agreements in the energy, semiconductor, telecommunications, aerospace and defense, and transportation sectors, among others.
Ms. Hague advises clients on complex cross-border transactional and counseling matters that touch U.S. national security and foreign investment, including reviews by the Committee on Foreign Investment in the United States (CFIUS), economic sanctions administered by Treasury’s Office of Foreign Assets Control (OFAC), export controls (ITAR/EAR), antiboycott regulations, anti-money laundering laws and regulations (FinCEN), and anti-corruption (FCPA).
On Aug. 9, 2023, President Biden issued the highly anticipated EO addressing outbound U.S. investments aimed at the development of critical technologies in "countries of concern" for military, intelligence, surveillance, or cyber-enabled capabilities. The EO was effective immediately, but the adoption and implementation of supporting regulations by the Department of the Treasury may not be issued for months.
The EO requires active investment funds--such as those dealing with private equity and venture capital--to notify the Treasury Department of and to seek approval for investments into countries of concern for semiconductors and micro-electronics, quantum information technologies, and certain artificial intelligence systems. U.S. and non-U.S. investors will need to conduct risk assessments on their portfolio companies, engage in deeper due diligence, and plan early for potential regulatory challenges.
CFIUS recently released its annual report to Congress on the Committee's national security reviews and investigations of certain foreign investment transactions from the preceding year. Parties should expect increased CFIUS scrutiny regarding upcoming inbound foreign investment deals and the possibility that mitigation measures may be required. Also, the report underscores the need for sufficient party due diligence into the national security implications of a transaction and for parties to carefully select between filing options when planning a CFIUS strategy.
Listen as our authoritative panel discusses the recent developments in inbound and outbound foreign investment oversight and provides tips for advising clients now on current and contemplated foreign business activity in light of the evolving regulatory landscape.
- Overview of the EO and Department of the Treasury's proposed rulemaking
- Impact of the EO and proposed rulemaking on private equity
- Potential future congressional action
- Highlights from the CFIUS Annual Report and key takeaways
- Advising clients on the implications of these new enforcement priorities on their inbound and outbound foreign investment strategies
The panel will discuss these and other related issues:
- What are the implications of the EO and the Treasury Department's proposed rulemaking on private equity?
- What should private equity firms do now to prepare for these new requirements?
- What does CFIUS' increased scrutiny on private equity investments mean for current and future transactions involving inbound foreign investments?
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