Down Round Financing Considerations for Fund Sponsors and Portfolio Companies
The COVID-19 pandemic has caused an unprecedented economic downturn of companies in the United States and globally, including companies sponsored by private funds. Consequently, with limited alternatives in the credit market, a down round equity financing may be the only alternative source of liquidity funding.
Morris Nichols partner Jeff Wolters will join Proskauer private equity transactions partner James Lee to discuss considerations fund sponsors and their portfolio companies need to think about in the context of Delaware law.
Thursday, June 4
12:00 p.m. EST | 5:00 p.m. GMT
Topics will include:
- Expected trends in down round financings in the next 12 months.
- Potential liabilities and procedures to mitigate them.
- Practical considerations for a new investor investing in a down round financing.