Structuring Private Funds to Avoid ERISA While Accommodating Benefit Plan Investors

Private fund managers need to understand what ERISA is, why ERISA matters and what exceptions are available to managers who do not want to be subject to ERISA as a manager of “plan assets.” At an event sponsored by the New York City Bar, ERISA practitioners from Simpson Thacher, Proskauer, Skadden and Wachtell Lipton discussed these issues and other ERISA-related developments applicable to organizing and operating private equity and hedge funds. The first article in this two-part series summarizes insights from the panelists on identifying benefit plan investors and exemptions available to fund managers under ERISA. The second article addresses drafting fund documents, ERISA-related liability and circumstances under which a private equity fund may be liable for unfunded pension liabilities of a portfolio company. See also “Steps Hedge Fund Managers May Take Today to Avoid Being Deemed a Fiduciary Under the DOL’s New Fiduciary Rule” (Jun. 29, 2017); “Happily Ever After? – Investment Funds That Live With ERISA, for Better and for Worse (Part Five of Five)” (Oct. 2, 2014); and “What Should Hedge Fund Managers Expect When ERISA Plans Conduct Due Diligence on and Negotiate for Investments in Their Funds?” (Jun. 20, 2013).

To read the full article

Continue reading your article with a HFLR subscription.