In addition to keeping their employees safe and productive during the coronavirus pandemic, fund managers are forced to grapple with the fallout to other parts of their businesses. The range of issues is daunting, as fund managers need to address escalating cyber risks from a distributed workforce while also limiting disruptions to their fundraising and investment efforts. To aid with mitigating those risks, the Private Equity Law Report interviewed several legal professionals on how fund managers can smoothly navigate the coronavirus pandemic. This second article in a three-part series recommends disclosures to provide during a stalled fundraising period, considerations when faced with a volatile M&A market, features to review in key person provisions and cyber risks to protect against. The first article
detailed the SEC’s relief for Form ADV and Form PF filings, as well as guidance for communicating with investors and managing liquidity risks introduced by the coronavirus. The third article
will prescribe best practices for fund managers to ensure business continuity, mitigate vendor risks and otherwise avoid operational disruptions. For more on cybersecurity risks, see “Cyber Breach Response Preparedness and Factors When Outsourcing the CTO Function (Part Two of Two)
” (Jan. 7, 2020); and “Steps Fund Managers Should Take to Defend Against the Rising Threat of Ransomware in the Wake of WannaCry
” (Jun. 15, 2017).