Antitrust Chronicle^® – Private Equity

Dear Readers,

This edition of the Chronicle focuses on private equity (“PE”) markets. 

The PE industry has experienced extraordinary growth over the past few years. In parallel, antitrust scrutiny of PE by antitrust enforcers has intensified, with visceral rhetoric from various agencies and legislatures worldwide. The articles in this volume address the implications of these developments.

Giorgio Motta, Kenneth B. Schwartz, David M. Goldblatt & Michael B. Singer focus on developments in the U.S. As noted, over the last several years, private equity firms have faced an increasingly aggressive antitrust enforcement environment. The U.S. Department of Justice, the Federal Trade Commission, and antitrust agencies in Europe are also closely examining private equity acquisition strategies as a whole, general investment incentives, potential filing violations and board interlocks. Antitrust regulators may, however, ultimately have difficulty proving that private equity business models actually result in less competition. The bottom line is that, with the right approach, private equity firms can continue to pursue their investment and acquisition strategies despite greater agency scrutiny.

Vishal Mehta, Megan E. Gerking & David E. Grothouse build on the above, by analyzing how these actions have ranged from strong concessions demanded in PE transactions under review to DOJ letters alleging illegal interlocking directorates and threatening lawsuits. In th