In this edition of the Paul, Weiss Private Equity Digest, we discuss the complex issues that can arise when parties in private transactions negotiate how to split transaction tax deductions, as illustrated by the recent Delaware decision in LSVC Holdings, LLC v. Vestcom Parent Holdings, Inc.
In market news, private equity fundraising, exit and M&A activity are down by almost every measure for the month of February as compared to January. Fundraising dropped from 23 funds closed in January to only 9 funds closed in February, with total dollars raised also dropping, though less precipitously, from $15.7 billion to $10.8 billion. Exits also fell, although by smaller percentages. The dollar volume of U.S. sponsor-related M&A deals declined sharply in February after hitting a 12-month high in January, contrasting with lower, but still robust, global sponsor-related M&A activity. The number of sponsor-related M&A deals showed similar declines.
