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Recent Developments Regarding Potential Pension Liabilities for Private Equity Funds

12.03.12
This Alert summarizes recent rulings interpreting when private equity funds could have exposure for the qualified pension liabilities of a portfolio company.  A recent case in the U.S. District of Massachusetts concluded that a private equity fund is not a “trade or business” for purposes of determining “controlled group” joint and several liability under the Employee Retirement Income Security Act of 1974 (“ERISA”) and, as a result, that the fund was not liable for the pension obligations of its portfolio company.