Debevoise & Plimpton Releases Its Spring 2024 Private Equity Report

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.

SOURCE Debevoise & Plimpton LLP