Wynn Segall on Russia Sanctions’ Impact on PE Industry in 2015
For “Policy & Regulation: shifting sands,” its article on the five biggest challenges facing the private equity industry in 2015, Private Equity International quoted Akin Gump international trade partner Wynn Segall on the impact on PE firms of U.S.- and EU-imposed sanctions on Russia.
Segall noted, “The sanctions programs for Iran and other countries involve smaller economies that have been isolated by many years of sanctions, so geographically they have less entanglement and cross-border investment than we see in connection with Russia. Russia is an enormous economy, whose trade and investment ties with the rest of the world are deep and substantial.”
The publication notes that PE firms’ challenge in this environment involves both their management of existing asset portfolios and their approach to fund formation and new transactions. Segall said, “Funds need to engage in thorough diligence for new investment opportunities and to take stock of their established holdings, their established relationships with investors, and their potential risk exposure through direct and indirect links to Russian companies in private equity or capital markets holdings.”