Litigation Defense & Compliance Lawyers for Private Equity Funds
Our Firm Represents Private Equity Investors and Portfolio Companies in All Aspects of Compliance, Risk Mitigation, Enforcement Defense, and Litigation
Private Equity Funds
Litigation & Compliance
Team Lead
Former DOJ Trial Attorney
Contact John directlyWhile the media often portray private equity as the Wild West, the reality is that private equity firms and portfolio companies that rely on private equity operate in a heavily regulated environment. While private equity investments may not be subject to the same level of oversight as public securities offerings, parties on both sides of these transactions need to give due consideration to compliance, and they need to be prepared to defend themselves in the event of a federal enforcement proceeding or lawsuit.
At Oberheiden P.C., our lawyers advise and represent parties on both sides of private equity transactions. If your company needs a private equity lawyer, we can work with you to assess your company’s risks, formulate an effective strategy, and see this strategy through to its conclusion. We represent private equity firms and portfolio companies in all legal matters—including compliance, risk management, enforcement defense, and litigation. If you need to make sure your company is making the right decisions with its long-term business and financial interests in mind, we can guide you forward.
Why Choose the Private Equity Lawyers at Oberheiden P.C.?
Plenty of law firms offer their services to private equity firms and portfolio companies that rely on private investment. So, why should you choose Oberheiden P.C.?
- Our Lawyers are Highly Experienced. Our lawyers have relevant experience at the federal level. This includes not only experience as compliance and defense counsel, but also experience as U.S. Attorneys and Assistant U.S. Attorneys prosecuting white collar cases.
- Our Lawyers Have Worked with Companies of All Sizes. Our clients range from small firms to large regional and national companies. Regardless of your firm’s or company’s needs, we have the resources required, and we can offer a custom-tailored solution.
- Our Lawyers Have Worked with Companies at All Stages of Portfolio. Our clients also include companies navigating all stages of growth. Whether you are starting a private equity firm with partners, your company is seeking a private equity investment, or it is time to execute an exit strategy, we’ve been there before.
- We Understand the Risks of Non-Compliance at the Federal Level. As a result of our private equity lawyers’ experience, we have an intimate understanding of the risks of non-compliance at the federal level. We help our clients understand these risks, and we help them manage these risks effectively.
- We Have a Proven Record of Success in Federal Investigations and Litigation. We have resolved the substantial majority of our clients’ federal investigations without charges. When our clients face charges, we strategically pursue favorable results at all stages of the litigation process.
Put our highly experienced team on your side
Our Services in the Private Equity Sector
What can we do for you? We provide a comprehensive suite of legal services to firms and companies operating in the private equity sector. Contact us today to speak with a private equity lawyer at Oberheiden P.C. about your company’s needs in the areas of:
Private Equity Compliance
Private equity firms and portfolio companies must comply with a multitude of federal laws and regulations. While the Dodd-Frank Act, Investment Company Act of 1940, and Securities Act of 1933 are three of the primary federal laws governing private equity transactions, these represent just a small sampling of the body of governing authority.
We provide comprehensive compliance representation to private equity firms and portfolio companies in the U.S. and abroad. For example, our private equity lawyers routinely assist clients with matters such as:
- Developing comprehensive and custom-tailored private equity compliance programs
- Compliance with the Dodd-Frank Act, Investment Company Act of 1940, and Securities Act of 1933
- Compliance with Regulation D
- Compliance with anti-money laundering (AML) laws and other applicable federal laws and regulations
- Private equity compliance program training, implementation, auditing, and enforcement
In August 2022, the U.S. Securities and Exchange Commission (SEC) proposed significant changes to the rules governing the private equity sector. Due to the fact that private equity funds are not subject to registration or regulation as investment companies under federal securities laws, the SEC perceived a significant lack of transparency in the industry. Under the SEC’s new rules, private equity funds and advisors face enhanced reporting requirements, and the SEC will be monitoring for compliance with these new reporting requirements. To avoid steep penalties, private equity firms and advisors will need to proactively manage compliance, and they will need to be prepared to demonstrate compliance to the SEC when necessary.
Private Equity Transactions
Our lawyers represent investment firms and portfolio companies in all types of transactions. This includes not only private equity transactions, but corporate, commercial, and employment transactions as well. Strategic contracting is a key component of effective risk management, and firms and companies need to ensure that their agreements include all necessary rights, remedies, and protections. With our experience in the private equity sector and in federal compliance and enforcement more broadly, we are able to help our clients negotiate protective agreements that facilitate the achievement of their long-term business goals and financial objectives.
Internal Audits and Investigations
To effectively maintain compliance and mitigate the risk of facing penalties in federal enforcement proceedings, private equity firms and portfolio companies need to monitor their compliance efforts on an ongoing basis. This involves conducting both regularly scheduled internal audits and ad hoc internal investigations as necessary.
Conducting internal audits and investigations serves two parallel purposes. First, it allows private equity firms and portfolio companies to identify any compliance failures before they lead to enforcement action or litigation. Second, it provides documentation of companies’ ongoing good-faith compliance efforts. Even companies that are in compliance can face federal scrutiny; and, when the SEC or another federal agency comes calling, these companies must be prepared to demonstrate their compliance in order to avoid enforcement proceedings.
Federal Audits and Investigations
Whether due to a reporting failure, whistleblower complaint, or other trigger, facing a federal audit or investigation presents significant risks. Private equity firms and portfolio companies need to handle these inquiries effectively—and doing so requires the advice and representation of experienced outside counsel.
At Oberheiden P.C., our private equity lawyers and consultants have significant experience on both sides of federal audits and investigations. As former U.S. Attorneys, Assistant U.S. Attorneys, and Special Agents, our lawyers and consultants previously led white collar securities investigations for the federal government. As federal defense counsel, our lawyers and consultants are highly experienced in helping clients achieve favorable outcomes without unnecessary and unwanted publicity.
Federal Enforcement Proceedings
While it will often be possible to avoid enforcement proceedings by taking a proactive approach to defending against federal audits and investigations, in some cases the SEC or other federal authorities will be intent on pursuing charges. Along with our experience favorably resolving federal inquiries, we also have substantial experience defending clients during federal enforcement proceedings.
From reporting violations to making fraudulent misrepresentations and omissions, federal enforcement proceedings in the private equity sector can target a wide range of statutory and regulatory offenses. When engaged as defense counsel, we work quickly to discern the full scope of our clients’ risk and execute targeted defense strategies.
Civil Litigation Proceedings
In addition to handling federal enforcement proceedings, we also represent private equity firms and portfolio companies in private civil litigation. Civil litigation in the private equity sector can involve a broad range of statutory, contractual, and common law claims. Our lawyers represent clients in civil litigation in federal courts across the country. We target negotiated resolutions when it is in our clients’ best interests to do so, and we fully litigate our clients’ disputes through trial when necessary.
For private equity firms and portfolio companies, effective risk management requires a multi-faceted approach. Companies and their executives need to have a comprehensive understanding of their obligations, and they need to be prepared to act quickly. At Oberheiden P.C., our lawyers serve as advisors and advocates, and we help our clients make the right decisions at the right times.
FAQs: What Do Private Equity Firms and Recipients Need to Know about Federal Compliance?
How Is the Private Equity Sector Regulated in the United States?
In the United States, private equity firms and portfolio companies are subject to numerous federal laws and regulations. Entities on both sides of private equity transactions need to prioritize compliance in order to avoid unwanted scrutiny and the risk of substantial penalties.
Does the SEC have Oversight of Private Equity Investments?
Yes, while private equity firms generally are not subject to SEC registration requirements, the SEC still has oversight of the private equity sector. The SEC regularly pursues investigations and enforcement proceedings targeting private equity firms and portfolio companies suspected of fraud and other offenses.
What Is Involved in Maintaining Private Equity Compliance?
Maintaining private equity compliance requires a top-down commitment to satisfying the firm’s or company’s legal obligations. This starts with developing and implementing a custom-tailored compliance program, and it continues with ongoing monitoring, auditing, and enforcement by the firm’s or company’s Chief Compliance Officer and outside counsel.
What Should I Do if the SEC is Looking Into My Private Equity Firm or Portfolio Company?
If the SEC is looking into your private equity firm or portfolio company, you should engage outside federal defense counsel promptly. Oberheiden P.C.’s private equity lawyers regularly represent clients in SEC matters, and our lawyers can get to work immediately building your business’s defense.
Schedule a Consultation with a Private Equity Lawyer at Oberheiden P.C.
For more information about Oberheiden P.C.’s representation of private equity firms and portfolio companies, please contact us to arrange a complimentary consultation. Call 888-680-1745 or inquire online to schedule an appointment today.
Litigation Defense & Compliance Lawyers for Private Equity Funds