Private equity lawyers are concerned that they are not getting access to the information they require. One-third of specialists questioned at IFLR's Private Equity Forum last month identified a lack of information as their chief anxiety. This applied equally to lawyers undertaking new transactions and those attempting to restructure existing positions.
A theme of distress unites the two. With many of the most attractive opportunities for private equity currently in trouble, lawyers are having to do more rigorous due diligence to mitigate the risk of fraud and the impact that would have on the profitability of an investment. As one lawyer comments: "Nothing destroys value like a corruption case hitting the media."
Pay your dues
However, as another laments: "Due diligence depends on the quality of information provided. You have to start from the position that there is a fraud to uncover and then decide how much pressure...