Private Equity firms fear increase in litigation
Almost half of private equity firms believe they will face an increased level of lawsuits over the next two years, according to a survey by Marsh.
Asked whether the legal action brought against private equity firms in the next 24 months will increase, decrease or remain the same 47% expected it to increase, while 43% said it would remain the same. Only 6% thought there would be less legal action.
The survey also found that private equity firms expect regulators to be the single biggest influencer of potential allegations with 83% citing them as a likely litigant. However, the reality is that regulators today account for just 2% of legal
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