With the global coronavirus pandemic
wreaking havoc on financial markets and businesses, fund managers are preparing for long-term disruption to their business operations. In order to endure those disruptions, fund managers need to revisit oft-overlooked operational items to ensure they can thrive during a long-lasting pandemic, including reevaluating employee efforts, vendor safeguards, basic compliance measures (e.g.
, satisfying the custody rule) and insurance coverage. To support those efforts, the Private Equity Law Report interviewed various legal professionals on how fund managers can smoothly navigate the coronavirus pandemic. This final article in a three-part series examines relevant operational risks, including important business continuity measures, vendor management techniques and insurance coverage issues. The first article
covered the SEC’s relief for Form ADV
and Form PF
filings; techniques for GPs to effectively communicate with LPs; and tips for managing liquidity if LPs struggle to meet capital calls. The second article
detailed other private fund-specific matters implicated by the coronavirus pandemic, including key person provisions and ongoing fundraising efforts. For more on mitigating operational risks, see “Fund Managers Must Supervise Third-Party Service Providers or Risk Regulatory Action
” (Nov. 16, 2017); and “Challenges and Solutions in Managing Global Compliance Programs
” (Oct. 5, 2017).