February 12, 2009

Look Out for Hoax Letters

According to this Kirkland & Ellis memo, several private equity funds have received letters purporting to be from (or, in some cases, to) the SEC. These letters ask the funds not to make capital calls on their LPs and/or reduce the commitments of their LPs.

While this may be one investor’s unique solution to the problem, we have several good memos discussing liquidity concerns of private equity funds in our “Private Equity” Practice Area. Of course, anyone who receives such a letter should contact the SEC to verify the authenticity – and please also shoot me a copy. I won’t post it unless I receive permission.