The Vampire Diaries: Antitrust Scrutiny Intensifies Around Private Equity

The private equity (“PE”) industry has experienced extraordinary growth over the past few years. In parallel, antitrust scrutiny of PE by the U.S. enforcement authorities has intensified, with visceral rhetoric from the agencies and Capitol Hill transforming into aggressive action. Most recently, these actions have ranged from strong concessions demanded in PE transactions under review to DOJ letters alleging illegal interlocking directorates and threatening lawsuits. In this article, we explore antitrust focus on PE in the context of broader enforcement trends, highlight recent enforcement activity, preview what dealmakers and practitioners may expect on the horizon, and offer practical tips for navigating this new landscape.

By Vishal Mehta, Megan E. Gerking, Omar E. Pringle & David E. Grothouse^[1]

It is no secret that the private equity (“PE”) industry has reached extraordinary heights in recent years. The past 18 months have been particularly explosive: buyout values and exit multiples have skyrocketed, fundraising has surged, and PE strategies such as buy-and-build and growth investing have experienced dynamic growth.^[2] In spite of recent economic headwinds stemming from factors such as rising inflation, high interest rates, and the war in Ukraine, the industry has remained strong. Its allure has even penetrated the rare air of pop culture royalty, with reality star Kim Kardashian recently announcing the launch of SKKY Partners, a private