With Mitt Romney’s failed candidacy for president in the past, the private equity industry looked forward to a quieter 2013, at least as far as headlines were concerned. But that didn’t really happen. The industry couldn’t keep itself out of the news, thanks to a number of legal, regulatory and legislative headaches that bubbled up in 2013—collusion, SEC registration, carried interest, the Volcker Rule and even a case involving Mexican drug cartels. Private equity can’t catch a break these days.
But, as luck (and some lobbying) would have it, the industry didn’t have a terrible year. The Volcker Rule, arguably, was a net positive for PE firms, carried interest wasn’t addressed in the December budget, and H.R. 1105, which would exempt PE firms from registering with the SEC, was passed in the House. Combined with a “biblical” year for exits, all in all it was a good year for the industry.
Click here for a quick recap of four headline-grabbing legal issues the PE industry grappled with in 2013.