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Updated over 7 years ago, 07/24/2017
Self Dealing Prohibition
If I invest as a LP in a PE Fund, in which I am a minority partner (less than 5%) and my son ends up working for the GP at some later date as an entry level analyst, does the investment become prohibited? If yes, how do I handle this?
Also, if yes, how far down the corporate food chain does the prohibition exist if my son works as an Investment Banking analyst for a company used by the GP or works for a division of the GP's firm or a division of the IB's firm?
My first question is the most important, but I am hoping my son is not required to switch careers as a result of how the law is interpreted. In Sorenson's book (Ch 6) he mentions this is the one area where there is some mixed messages from the courts.