April 4, 2016
Private Equity: Fund Liable for Portfolio Company’s Pension Liabilities
As noted in these memos posted in our “Private Equity” Practice Area, a federal district court in Massachusetts held – on remand from the First Circuit – in Sun Capital Partners III v. New England Teamsters & Trucking Industry Pension Fund (D. Mass. March 28, 2016) that non-parallel private equity funds with the same sponsor are jointly & severally liable for the multi-employer pension plan withdrawal liability of a portfolio company in which they both invest under ERISA.