Private Fund Disputes



We use our vast and deep understanding of the private funds industry to solve disputes unique to alternative investments and guide our clients away from developing disputes.

Our approach

We understand the duties and obligations of funds and managers, so we can assist them with any challenge, from day-to-day obligations, to control contests, to winding down and liquidation. In addition, with red flags proliferating in the marketplace, funds and managers must understand their rights and remedies when disputes arise. We have an experienced team of litigators with an industry-leading reputation in solving complex private fund disputes.

Our clients include funds, investors, liquidators, managers, limited partners, family offices, high-net-worth individuals, trusts and insolvent estates. We focus on disputes from around the world in both U.S. domestic funds and in funds domiciled in offshore jurisdictions including the Cayman Islands and British Virgin Islands (BVI).

Our team is among the most experienced in the industry in handling redemption and clawback disputes and related insolvency proceedings. As a result, we understand how to help clients address the friction between investors and managers. Fund and manager clients have also turned to us repeatedly for advice and representation with regard to criminal and civil insider trading investigations, SEC and CFTC enforcement and compliance priorities, as well as Foreign Corrupt Practices Act (FCPA) actions brought by the United States Department of Justice.

We work with

  • Hedge funds
  • Private equity funds
  • Venture funds
  • Tax credit and real estate funds
  • Credit default swaps
  • Asset-backed securities
  • Collateralized debt obligations (CDO)
  • Mortgage-backed securities
  • Real estate investment partnerships
  • Family trusts
  • Business/corporate trusts
  • PIPE investments

Representative Experience

Offshore

  • Representing the BVI-based liquidators of Mount Capital Fund Limited, a British Virgin Island–based hedge fund, in a $50 million preference and clawback action brought by the Madoff trustee, in one of the first sales of Madoff-tied SIPA claims to a third party, and with litigation advice related to recovery of assets lost in Madoff-related funds
  • Representing the Cayman Islands–based liquidators of ThreeAM SPC, a hedge fund of funds in valuation/liquidation disputes with various PIPE funds
  • Represented nine pairs of Cayman Islands and Delaware–based issuer/co-issuer defendants in a $100 million securities fraud case involving the sale of CDOs, resulting in a complete dismissal of the case
  • Represented an Asian private equity fund in connection with its investment in the U.S. involving an SEC investigation and U.S. litigation concerning mismanagement by former manager
  • Representing UK family trust in connection with disputes regarding special purpose vehicles organized under Cayman Islands law
  • Representing a Singapore corporation, its affiliates and agents, with respect to global litigation originating in the British Virgin Islands

Onshore

  • Representing Boston Capital Corporation in numerous limited partnership disputes related to syndicated tax credit funds, including resolution of disputes pertaining to fiduciary and contractual duties between and among limited and general partners
  • Representing Credit Suisse in numerous actions worth billions of dollars with respect to disputes arising out of the sale of residential mortgage-backed securities
  • Represented limited partner in litigation against a hedge fund, its investment-manager and principal resulting in a rescission damage award of $26.5 million
  • Representing numerous litigation financing funds in due diligence related to onshore fund dispute

Contacts

Stephen M. LaRose

Partner
Practice Group Co-Leader, Complex Commercial Disputes;
Deputy Leader, Private Fund Disputes

slarose@nixonpeabody.com

Phone: 617-345-1119

  • Ranked as National Tier One in U.S. News/Best Lawyers “Best Law Firms” in Real Estate Law and Commercial Litigation. Received metropolitan honors in Real Estate Law and Commercial Litigation in Boston and Rochester and Construction Litigation in San Francisco.
  • BTI Litigation Outlook 2013
    • “Most Feared Law Firm”—Honor Roll
    • Strong Performance—
      Commercial Litigation, IP Litigation, Product Liability Litigation
  • Chambers USA/Global
  • Legal 500
  • Benchmark: Litigation/Appellate
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