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CFIUS confuses; ILPA releases D&I roadmap

FIRRMA? I’ll take Basel IV, please; ILPA releases roadmap for D&I best practices.

CFIUS: I’ve written a lot in my career about financial regulation, cutting my teeth as Dodd-Frank and other initiatives tried to rectify perceived failings in banking and securitization, Basel III and “IV” and all of their abstruse bits and pieces, MiFID II, LIBOR reform, CRD IV in Europe, CSDR, GDPR … pretty much you-name-it, I’ve covered it. I’m not exactly sure why, but I find this Committee on Foreign Investment in the United States regulation, the Foreign Investment Risk Review Modernization Act, nearly unreadably confusing. So, good on Connor Hussey for a pretty clean approach to this.

Anyway, I guess I’m not the only one. Even the law firms don’t seem to agree on certain aspects. The main takeaway for this one appears to be: consult your lawyer. And soon, too, because it went into effect nearly two weeks ago. The list of covered transactions types is likely only to expand, and the means by which GPs become out of the reach of CFIUS jurisdiction appears to be defined in part by multiple-pronged negative tests. In some cases, even if you are exempt from certain filing requirements, you’re not exempt, necessarily. Give me risk weightings and market risk measurements over this, any day.

ILPA D&I roadmap: The Institutional Limited Partners Association is upping its push to enhance diversity and inclusion in private markets, releasing a “Diversity and Inclusion Roadmap”, along with a best practice submission form (accessible from the link) so that industry participants can propose additional resources.

Top-level categories include “Demonstrate Organizational Support for D&I”, “Attract and Promote Diverse Talent”, “Build and Sustain Inclusive Cultures”, “Apply D&I to Investment Strategy” and “Measure and Benchmark D&I Progress.” Subcategories include links to an array of resources, from links to a company that provides compensation and pay equity analysis, to the NAACP’s Job Finder site for recruitment, to the ILPA Standard DDQ and their Diversity Template for GP Funds.

Email prepared by Graham Bippart