Overview
Private equity (PE) and venture capital (VC) sponsors face ever evolving legal and regulatory risk tied to their portfolio company oversight and financing mechanisms. As expectations increase, sponsors must carefully balance governance responsibilities with the risk of heightened liability exposure.
Members of McDermott Will & Schulte’s cross-practice team and General Counsel and Chief Compliance Officer at Level Equity, Ben Magleby, shared practical insights on navigating these complex issues and protecting your organization.
Discussion topics included:
- Emerging liability theories for PE and VC sponsors, including alter-ego and intent to be bound concepts
- Proactive strategies for sponsors, investment advisors, and portfolio company management to mitigate compliance and liability exposure
- Balancing effective oversight without excessive entanglement with portfolio companies
- Enforceability concerns impacting pay-to-play clauses in venture capital financing deals