NEW
YORK, May 23, 2024 /PRNewswire/ -- Debevoise
& Plimpton LLP announced today the release of its Spring 2024
Private Equity Report.
Climate related disclosure rules in both the United States and the EU, as well as
greater scrutiny of foreign investment, has further complicated the
regulatory environment for private equity sponsors and LPs. In
addition to these issues, the Spring 2024 Private Equity Report
explores important considerations in transaction agreements and due
diligence, as well as reasons for optimism in growth equity
activity.
Highlights from the Report include:
- Uptick in Growth Equity Activity Helps Signal a
Thaw. Private equity and venture firms are seeing green
shoots in growth-stage companies that have survived the tech
downturn and macro headwinds, with investment activity and
fundraising in the space both picking up as a result.
- Complying with—and Benefitting From—the EU's Sustainability
Reporting Requirements. The EU's Corporate
Sustainability Reporting Directive (CSRD) presents numerous
challenges for the EU and non-EU enterprises it covers, but can
also provide valuable insights for affected sponsors regarding
sustainability-related risks and opportunities.
- SEC Climate-Related Disclosure Rules: Key Considerations for
PE Sponsors. Although the SEC's adoption of its
long-awaited climate disclosure rules has encountered legal
resistance, SEC registrants and sponsors should be aware of its
implications for M&A and securities transactions.
- CFIUS Developments and Forecast: What Private Equity
Sponsors Should Know. The Committee on Foreign
Investment in the United States
(CFIUS) has been increasingly active since the enactment of FIRRMA
in 2018 – and has begun to closely scrutinize private equity
transactions regardless of the nationality of the sponsor.
- FDI Scrutiny of Private Equity Secondary Deals on the
Rise. Regulatory scrutiny of foreign direct investment
is expanding in jurisdictions around the world—and turning greater
attention to secondary transactions, requiring sponsors and
investors to prepare accordingly.
- Putting AI into the Due Diligence Equation.
The accelerating growth of artificial intelligence in business
opens up a wide avenue for opportunity and risk—and a new set of
due diligence considerations for sponsors, including IP protection
and litigation, licensing, data privacy, cybersecurity and the
allocation of risk with third parties.
- Management Equity Issues in Continuation Funds.
Continuation funds have become an increasingly popular exit
strategy, but they also raise potentially challenging questions
issues regarding how management equity and incentives should be
treated in the transaction.
- Choosing Your Battlefield: Selecting the Appropriate Dispute
Resolution Process. In the heat of negotiating a deal, dispute
resolution clauses can seem an afterthought. But when a conflict
arises, how that clause is drafted can make the difference between
effective resolution and a prolonged, resource-draining
dispute.
The full Report is available here.
About the Debevoise Private Equity Group
Debevoise is a trusted partner and legal advisor to a majority
of the world's largest private equity firms, and has been a market
leader in the Private Equity industry for over 40 years. The firm's
Private Equity Group brings together the diverse skills and
capabilities of more than 500 lawyers around the world from a
multitude of practice areas, working together to advise our clients
across the entire private equity life cycle.
Debevoise & Plimpton LLP is a premier law firm with
market-leading practices, a global perspective and strong
New York roots. We deliver
effective solutions to our clients' most important legal
challenges, applying clear commercial judgment and a distinctively
collaborative approach.
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SOURCE Debevoise & Plimpton LLP