Managing Private Funds in a Volatile Market: Interacting With Investors, Lenders, and Regulators
Investments, Distributions, Governance, Conflicts, Fund Finance Concerns
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Banking and Finance
- event Date
Thursday, May 26, 2022
- 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 course will examine the critical legal issues that private fund managers should consider in managing funds and fund investments in the current market. The panel will discuss actions that managers should take now with regard to their investors, lenders, and regulators.
Mr. Kustin is a partner in the Investment Management practice. He focuses his practice on advising sponsors of, and investors in, complex hedge, private equity and credit funds, and regularly counsels private fund advisers on international investment platforms including in Europe, Asia, and Latin America. Mr. Kustin’s clients range from market-leading global asset managers, to startups, mid-sized, and larger managers. He has extensive experience counseling established, global investment advisers as well as start-up managers in most aspects of their operations and regulatory compliance matters. He advises investment fund managers faced with complex restructurings, succession planning, crisis/conflict resolution, and consent solicitations. His practice includes advising clients on the structuring of arrangements between investment managers’ principals, seeding transactions, co-investment and secondary transactions, and LP-side investments in private funds.
Mr. Cota is a partner in the Financial Restructuring practice at Paul Hastings and is based in the firm’s New York office. He advises and represents banks, private equity and hedge funds, business development companies, alternative capital providers, other financial institutions and private companies on a variety of complex financing transactions across a broad variety of industries and in all levels of the capital structure, both lender-side and borrower-side (including administrative agent and arranger representations).
Ms. Guberman has successfully handled a wide array of regulatory enforcement and white collar criminal matters, including those involving allegations of corporate and accounting fraud, securities fraud, insider trading, misappropriation of trade secrets, consumer protection issues, cybersecurity issues, and money laundering. She regularly represents clients in court and before the United States Department of Justice ("DOJ"), the Securities and Exchange Commission ("SEC"), the Federal Reserve, state attorney generals, FINRA and other self-regulatory organizations, other federal agencies, and international regulators.
Private investment funds and their investment managers are under increasing scrutiny in a variety of ways. Managers of both closed-end and open-end funds should continually assess fund operations and determine the proper 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 impact of proposed new SEC rules, including the standard of care imposed on them. In light of recent economic predictions, 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.
In addition to addressing concerns about a fund's investor relations and governance, the manager will need to monitor the fund's portfolio and the possible impact of international sanctions on the markets in which each fund invests, better understand their fee structure and expense provisions, and become familiar with new marketing rules and potential new reporting requirements.
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 a special focus on the SEC's enforcement priorities. And special considerations will apply in the context of a fund under duress or dealing with distressed investments.
Listen as our authoritative panel examines these and other fund management issues in the current environment.
- New scrutiny of PE funds, hedge funds, and other private funds and the impact of the SEC's recent rule proposals
- Fundraising considerations
- Fund administrative/management considerations
- Assessing and responding to liquidity issues and withdrawal requests
- Portfolio company issues: managing risk at the portfolio level and other current investment considerations
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?
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