How Private Equity-Backed Companies Can Move the Needle on Sustainability Sustainability commitments at the private equity firm level are not translating into portfolio company businesses Private equity firms are making highly visible commitments to address the challenge of sustainability. Market-leading firms, such as The Carlyle Group, EQT, and TPG Capital, now produce sustainability reports and have dedicated executives overseeing sustainability… Published on: 2021-09-22 Source: The Harvard Law School Forum on Corporate Governance and Financial Private Equity Carve-Outs Ride Post-COVID Wave Last spring, Dell spun off its cloud computing business, VMWare, in a deal valued at nearly US$63 billion, with the equity from the deal funneled to existing shareholders including Dell itself and the PE firm Silver Lake Partners, Dell’s strategic financial partner since 2013. The unconventional Dell deal serves as… Published on: 2021-09-01 Source: The Harvard Law School Forum on Corporate Governance and Financial Surging M&A Megadeals Top Records In Q2 The second quarter of 2021 saw the announcement of megadeals (deals worth US$5 billion or more) totaling US$734.4 billion in value—more than in any other quarter on Mergermarket record (since 2006). Megadeal volume hit 45, the third-highest number in any quarter on record. Activity at the top end was dominated by… Published on: 2021-08-21 Source: The Harvard Law School Forum on Corporate Governance and Financial The Missing Element of Private Equity How Private Equity Can Drive Boardroom Diversity Corporate boards are vital in helping companies maintain a longer-term focus while executing on shorter-term priorities. And a board’s unique stature, sitting atop the organization, allows it to shape corporate culture while guiding long-term strategy through a mix of encouragement, skepticism, and guidance…. Published on: 2021-08-08 Source: The Harvard Law School Forum on Corporate Governance and Financial Venture Capital’s “Me Too” Moment Over the last seventy years, female labor market participation has increased significantly. Women’s representation in highly compensated occupations such as law, medicine, consulting, and investment banking has steadily improved. Yet, the gender diversity in venture capital has lagged significantly behind: On average, only about 8% of venture capital investors hired… Published on: 2021-07-13 Source: The Harvard Law School Forum on Corporate Governance and Financial Alarm.com and the Open Questions Regarding Trade Secret Claims Related To Usurpation of Corporate Opportunities In a previous memorandum, we discussed a recent Texas Court of Appeals case which held that members of a Delaware LLC can contract around (i.e., waive) the general principle protecting against usurpation of corporate opportunities. See Patterson v. Five Point Midstream Funds I and II, L.P., Case No. 01-19-00-643-CV (Tex…. Published on: 2021-06-29 Source: The Harvard Law School Forum on Corporate Governance and Financial Silicon Valley Venture Capital Survey – First Quarter 2021 Background Our survey analyzed the terms of 259 venture financings closed in the first quarter of 2021 by companies headquartered in Silicon Valley. Key Findings Valuation results continued their momentum, reaching historical highs Up rounds exceeded down rounds 85% to 10%, with 5% flat in Q1 2021, a decrease from… Published on: 2021-06-02 Source: The Harvard Law School Forum on Corporate Governance and Financial Delaware Court Orders Up Prevention Doctrine to Require Reluctant Buyer to Close In Snow Phipps v. KCAKE Acquisition, the Delaware Court of Chancery ordered the buyer (Kohlberg) to close on its $550 million agreement to purchase DecoPac, a cake decorations supplier. In doing so, the court easily rejected the buyer’s claims that the COVID-19 pandemic resulted in a material adverse effect (“MAE”)… Published on: 2021-05-27 Source: The Harvard Law School Forum on Corporate Governance and Financial Private Equity and Financial Stability: Evidence from Failed Bank Resolution in the Crisis Private equity (PE) has become an important component in the financial system. An extensive literature explores the effects of private equity buyouts on firm-level outcomes, with some papers arguing that such buyouts positively affect the operations of target companies. At the same time, the private equity industry generates much controversy…. Published on: 2021-05-26 Source: The Harvard Law School Forum on Corporate Governance and Financial Energizing the M&A Market Post-Crisis During these unprecedented times, all of us have had to acclimate to new ways of working, adapting creatively to the changed environment. Economic activity, including M&A dealmaking, has inevitably been depressed by the COVID-19 crisis, especially in Q2 2020—but industries and businesses have found novel solutions to the problems they… Published on: 2021-03-30 Source: The Harvard Law School Forum on Corporate Governance and Financial Private Equity – Year in Review and 2021 Outlook 2020 was a tale of two halves: during the first half of the year, global private equity deal volume fell precipitously, declining more than 20% relative to the same period in 2019; in the second half of the year, private equity dealmaking roared back to life, ending the year at… Published on: 2021-02-06 Source: The Harvard Law School Forum on Corporate Governance and Financial The Rise of Growth Equity—Connecting PE and VC Emerging companies have historically been backed by venture capital funds, but as Europe’s startup scene matures, involvement by more traditional private equity investors is growing, particularly in the tech, consumer, and digital health sectors. The number of PE investments in emerging companies has increased year on year, with investments in… Published on: 2021-01-15 Source: The Harvard Law School Forum on Corporate Governance and Financial 1 2 3 … Next
