Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other voices: The impact of CFIUS on private equity and hedge fund investors

Monday, March 02, 2020

By: Abbe Dienstag, Richard Gilden Kramer Levin Naftalis & Frankel

On Feb. 13, 2020, final regulations became effective updating and refining rules regarding transaction reviews by the Committee on Foreign Investments in the United States (CFIUS). These regulations, which until now have been in interim form, implement the previously enacted Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). Together with FIRRMA, the new regulations significantly expanded the authority of CFIUS to a much broader range of transactions and investments. FIRRMA may have been motivated by heightened concerns over acquisitions involving foreign government-associated purchasers, particularly involving China, and the prevention of security-related critical technologies falling into the hands of hostile state actors. But the broad reach of the statute and regulations, especially given their complexity and the absence in many cases of a clearly defined scope of application, has the potential to affect a wide swath of transactional actors. These include private equity firms and hedge funds that count foreign nationals and foreign governmental entities among their investors. The recent effectiveness of the new regulations offers a timely opportunity to review the impact that CFIUS and its filing and review procedures are likely to have on these funds and their investors.

Overview

CFIUS is an interagency federal government consortium that reviews transactions that may resul......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1