The global outbreak of coronavirus (i.e.
, COVID‑19) has caused massive disruptions across the U.S. as businesses deal with full or partial office shutdowns; limited travel; potential service disruptions; and volatility in the financial markets. Amid uncertainty of when society will return to normal, PE sponsors need to take extra care to prepare for the effect the coronavirus will have on their operations and investments. To assist in those efforts, the Private Equity Law Report interviewed a number of legal professionals about considerations and best practices for PE sponsors to mitigate risks from the coronavirus pandemic. This first article in a three-part series examines the SEC’s recent order offering relief from Form ADV and Form PF filings; considerations for GPs to effectively communicate with LPs during the pandemic; and tips for managing liquidity risks if LPs struggle to meet capital calls. The second article
will detail other private fund-specific matters implicated by the coronavirus, including key person provisions and ongoing fundraising efforts. The third article
will address certain general operational risks that fund managers need to mitigate. See “Can Emerging Fund Managers Use Technology to Satisfy Business Continuity Requirements and Mitigate Third-Party Risk?
” (Sep. 3, 2015); and “How Should Fund Managers Approach Formulating Risk Assessment Plans and What Regulatory Risks Should Be on Their Radar?
” (Feb. 14, 2013).