As firms in the asset management industry structure merger and acquisition transactions – including joint ventures, acquisitions of minority interests and lift-outs of teams – they need to be aware of the potential issues that arise with such transactions. Integrating two businesses may result in tax consequences, regulatory issues or other compliance concerns. A panel of domain experts from K&L Gates recently discussed current trends in the asset management industry and a number of considerations in planning an acquisition or other deal with an asset manager, broker-dealer or adviser, including choice of partner, due diligence, structuring, taxation and various regulatory and compliance considerations. Moderated by Michael S. Caccese, a practice area leader, the program featured partners Kenneth G. Juster and Michael W. McGrath; and practice area leaders D. Mark McMillan and Robert P. Zinn. This article, the second in a two-part series, summarizes the key takeaways from that program with respect to taxation, regulatory and business integration concerns. The first article
addressed asset management industry trends, choosing a partner, due diligence and structuring considerations. See also “PLI Panel Addresses Recent Developments with Respect to Prime Brokerage Arrangements, Alternative Registered Funds and Hedge Fund Manager Mergers and Acquisitions
,” Hedge Fund Law Report, Vol. 6, No. 41 (Oct. 25, 2013).