Five Tips for Fund Managers to Navigate the Ukraine/Russia Crisis
William V. de Cordova
Private Equity Law Report
Although the private funds industry – and, of course, the world – was initially shocked by Russia’s invasion of Ukraine, it was forced to immediately pivot to considering the many ramifications therefrom. Among other surprising results, the war prompted a sudden plummet in the value of the Russian ruble; an immediately illiquid market for any Ukrainian or Russian companies; unexpected supply-chain issues; and numerous rounds of global sanctions against Russian individuals and entities. Those have, in turn, continued to impact fund managers’ portfolios, investors and service providers. In light of the fallout of that dynamic and ongoing situation, the Private Equity Law Report is highlighting five steps that fund managers can take to fortify themselves against the fallout from the Russia/Ukraine war, along with five articles from its archives to help them complete those tasks. Those include protecting against potential Russian cybersecurity attacks; pivoting funds’ investment strategies to avoid Russia or otherwise take advantage of new opportunities; claiming force majeure to end relationships with certain Russian investors and entities; reevaluating valuations of affected assets; and bolstering anti-money laundering and other investigative efforts to avoid sanctioned Russian individuals and entities. Next week (the week starting May 9, 2022), the Private Equity Law Report will resume its normal weekly publication.