What are the most significant cases and transactions that your legal team has recently been involved in?

One of the most significant undertakings our legal team has recently been involved in is the management of our newest fund, which has been licensed as a small business investment company (SBIC) fund by the Small Business Administration (SBA). This has necessitated navigating a complex regulatory landscape, as the SBIC programme introduces additional layers of compliance and oversight compared to traditional private equity funds. Our team has played a crucial role in ensuring that the fund complies with the stringent requirements set forth by the SBA. This includes adherence to leverage rules, ensuring proper fund structuring, and following investment restrictions aimed at supporting small businesses. The legal intricacies of maintaining an SBIC licence while aligning the fund’s objectives with regulatory demands have been essential in executing successful transactions. Through this fund, we have been able to invest in a diverse portfolio of small businesses, which not only drives financial returns but also supports the SBA’s goal of stimulating growth in underserved markets.

Which recent political, economic or regulatory changes have impacted your work the most in the past year? 

Over the past year, the Security and Exchange Commission’s (SEC) regulatory tightening around private equity has had a significant impact on most registered investment advisers. The most notable changes have focused on increasing transparency and reporting requirements. The newly issued rules specifically target private equity firms to ensure greater transparency, particularly regarding fees, conflicts of interest, and portfolio company performance, among other aspects of the business. These regulatory changes by the SEC have introduced challenges, particularly in terms of rising compliance costs and necessary operational adjustments. 

How does your legal team collaborate with other departments within the company? 

We take great pride in being highly proactive, rather than merely reactive. From the outset of any project, we work closely with the business teams, ensuring that legal considerations are integrated into every stage of decision-making.

Rather than acting as gatekeepers, we serve as strategic partners. Whether it involves structuring deals, navigating regulatory complexities, or supporting day-to-day business functions, our legal team is actively involved in meetings, brainstorming sessions, and planning discussions. This close collaboration enables us to grasp the core business objectives and provide tailored legal advice that strikes a balance between risk and opportunity.

Our capacity to align with the business side fosters agility, allowing the company to make informed decisions without unnecessary delays. This synergy between legal and business operations is crucial for driving innovation while maintaining compliance.