PE Funds: Faced With Portfolio Companies’ Pension Withdrawal Liability?

    View Authors August 2013
    The First Circuit Court of Appeals recently adopted an expansive view of what constitutes a "trade or business" for purposes of determining whether a private equity fund can be held jointly liable for multi-employer pension plan withdrawal liability of the fund’s portfolio companies under the Employee Retirement Income Security Act of 1974, as amended (ERISA). Although the First Circuit’s ruling directly relates only to multi-employer pension plan withdrawal liability under ERISA, its impact could also have wider tax and restructuring implications for private equity funds, their managers and investors.