The secondary market for limited partner interests in venture capital funds has witnessed robust growth in recent years as an increasing number of existing venture fund investors seek an early exit from their positions for one reason or another (e.g., liquidity needs, portfolio rebalancing, end of their own term, etc.). That demand for an early
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Private Fund Adviser Rules Vacated: Key Takeaways
Written by: David Solander, Meghan Carey and Jessica McKinney
A three-judge panel of the US Court of Appeals for the Fifth Circuit unanimously vacated the US Securities and Exchange Commission (SEC)’s private fund adviser rules and amendments (Private Fund Rules),[1] stating that “no part of it can stand.”[2]
In August 2023, the…
Venture Capital Funds: 3(c)(1) Funds vs. 3(c)(7) Funds
Provided that they meet certain criteria, venture capital funds are not required to be registered as an “investment company” by the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940 (the “Investment Company Act”). The Investment Company Act defines “investment company” to include any issuer which is or holds itself…
Management Rights Letters: What they are, why they are important and potential traps to be mindful of
By Mel Wheaton
What are they?
A letter agreement between a portfolio company and an investing venture capital fund which provides the venture capital fund with certain “management rights” that allow it to substantially participate in, or substantially influence the conduct of, the management of the portfolio company.
Why are they important?
A management rights letter is critical…
What to know about noncompete agreements in 2024
By Trent Dykes
Article prepared by and republished courtesy of our colleagues Stephen Taeusch, Daniel Turinsky, and Carsten Reichel; originally published here: https://www.dlapiper.com/en/insights/publications/2024/01/what-to-know-about-noncompete-agreements-in-2024
As we head into 2024, employers can expect more risk related to the use of restrictive covenants at both the federal and state level. From the Federal Trade Commission’s (FTC) anticipated final rule…
Buying assets from the FDIC
By Trent Dykes
Article prepared by and republished courtesy of our colleagues Jeffrey Hare, John Clarke, John Sullivan, and Adam Dubin; originally published here: https://www.dlapiper.com/en/insights/publications/2023/03/buying-assets-from-the-fdic
In the wake of the appointment of the Federal Deposit Insurance Corporation (FDIC) as receiver for Silicon Valley Bank (SVB) and Signature Bank (SB) on March 10 and March 12,…
Applying the lessons of the SVB and Signature Bank failures: Steps for boards and management
By Trent Dykes
Article prepared by and republished courtesy of our colleagues Richard Marks, Kevin Criddle, Curtis Mo, and Jeffrey Lehrer; originally published here: https://www.dlapiper.com/en/insights/publications/2023/03/applying-the-lessons-of-the-svb-and-signature-bank-failures
The failures of Silicon Valley Bank and Signature Bank sent many companies into credit and liquidity crises. With the most pressing short-term impacts now stabilized, corporate boards and management should…
Takeaways from the Silicon Valley Bank and Signature Bank receiverships
By Trent Dykes
Article prepared by and republished courtesy of our colleagues Jeffrey Hare, Margo Tank, Christopher Steelman, David Whitaker, and Adam Dubin; originally published here: https://www.dlapiper.com/en-us/insights/publications/2023/03/takeaways-from-the-silicon-valley-bank-and-signature-bank-receiverships
On Friday, March 10, 2023, Silicon Valley Bank (SVB) was closed by its chartering regulator, the California Department of Financial Protection and Innovation, and the Federal Deposit…
Texas cracks down on cryptocurrency fraud: 2020 developments
By DLA Piper
Article prepared by and republished courtesy of our colleague Brooke Goodlett; originally published here: https://www.dlapiperaccelerate.com/knowledge/2020/texas-cracks-down-on-cryptocurrency-fraud.html
Texas continues to be a leader in the United States when it comes to cracking down on fraudulent cryptocurrency offerings, and the novel COVID-19 virus has not curtailed these efforts. In 2017, the Texas State Securities Board (the TSSB)…
New regulations reinforce CFIUS’s expanded role with respect to foreign investments in the US
By DLA Piper
Article prepared by and republished courtesy of our colleagues Christine Daya, Thomas M DeButts, Danish Hamid, Sarah E. Kahn, Richard Newcomb, Ignacio E. Sanchez, Lawrence E. Levinson and Dana Zelman; originally published here: https://www.dlapiper.com/en/us/insights/publications/2020/01/new-regulations-reinforce-cfius-expanded-role/.
On January 13, 2020, the US Department of the Treasury released two sets of…