News & Events

Michael Osnato, Co-Head of the Firm’s Funds Regulatory and Investigations group, and Michael Wolitzer, Head of the Firm’s Investment Funds Practice, were featured in a Q&A in Private Equity Law Report titled, “PE Industry in 2024: Emerging Trends in GP‑LP Negotiations, Fund Structures and Compliance Focuses (Part Two of Two).” The article, part two of a two part series, detailed specific fund terms and practices that are likely to remain prominent in 2024, along with compliance practices sponsors need to adopt to endure heightened SEC scrutiny. Michael Wolitzer explained that “In 2024, I think we will continue to see secondaries of various types in other asset classes,” but that an uptick in sponsors’ efforts to access retail and individual investor capital “is probably the biggest trend we have seen in our practice over the past 12-18 months.” He further described the potential impacts of the new Private Fund Rules, explaining that they “require fund managers to be more transparent with all LPs when giving economic benefits to certain LPs, typically in side letters.” Michael Osnato explained that, “we’ll see more resources being devoted to compliance and legal functions at fund managers because there is a clear sense, and rightly so, that more scrutiny is coming,” in 2024. In addition, he noted that “we are seeing more proactive testing of potential risk areas ahead of firms’ annual compliance reviews, and firms are generally being more front-footed on risk.” They both additionally highlighted key considerations for in-house GCs and CCOs at PE sponsors for the new year.

To read the full article, please click here (subscription required).