Davis Polk partner Jesse Solomon discussed the U.S. Justice Department and the Federal Trade Commission’s new merger guidelines with S&P Global Market Intelligence. 

When asked how the new guidelines could affect private equity firms, Jesse noted that he sees “more willingness by the agencies to bring enforcement actions against sponsors and portfolio companies,” which could result in increased enforcement rates from the agencies against private equity funds.

He added that roll-ups are a particular focus for the agencies and interlocking directorates, officers or directors serving at two competing companies could also attract a closer review of deals.

“New US merger guidelines threaten to increase pressure on PE add-on deals,” S&P Global Market Intelligence (February 13, 2024) (subscription required) 

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