News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Story

Brexit spurs new protections in private equity fund terms

Private equity firms are writing more flexibility into their fund documents to cope with the ramifications of the UK’s decision to leave the European Union.

Get out of jail free: buyout firms are writing protective clauses into fund documents to give them more flexibility to cope with Brexit ramifications
Get out of jail free: buyout firms are writing protective clauses into fund documents to give them more flexibility to cope with Brexit ramifications Photo: iStock

Private equity firms are writing more flexibility into their fund documents to cope with the ramifications of the UK’s decision to leave the European Union.

Lawyers involved in fund formation say protective clauses now being used include the ability to move or restructure funds, depending on the outcome of the UK's negotiations with the EU. Some lawyers say such protections are likely to extend to funds based in the Channel Islands, the Netherlands and Denmark.

WSJ Logo