Allocation and Liquidity Concerns in Private Equity and Venture Capital Funds

The current economic outlook has raised a host of allocation and liquidity issues for investors in private equity and venture capital (PE/VC) funds. Among them are over-allocation, significant losses in liquid capital reserves, fewer and smaller PE/VC distributions, and additional capital infusions into portfolio companies by PE/VC funds to carry them through this difficult period.

PE/VC fund sponsors are now receiving investor requests to reduce or terminate future capital commitments, consent to partial or complete capital withdrawals, or consent to transfers of investor interests in the fund. Knowing how to respond to such requests will be key in the successful management of PE/VC funds in this tough economic climate. This panel of private investment fund experts explores how fund sponsors can address capital needs while being responsive to investor liquidity constraints.

Topics of discussion include:

• Political and precedential considerations
• Investor defaults
• Legal considerations: fiduciary duties, broker-dealer activity, confidentiality concerns
• Limitations in fund documents
• ERISA and tax considerations

David Watson participated in this webinar hosted by Thomas Reuters which is available for on demand purchase at West Legalworks. A discount is available to friends of Goodwin Procter who wish to register and view the webinar. Please follow the instructions below to apply the discount.

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