Davis Polk has a distinguished practice in representing funds, whether private equity, hedge funds or public funds, in litigations, regulatory investigations and internal inquiries. This practice – which combines our litigation and regulatory experience – makes Davis Polk one of the go-to firms for these highly complex matters. Davis Polk is widely recognized as having one of the foremost litigation and internal investigations practices, and some of the most experienced hedge, private and public fund advisory lawyers in the country, which together make for a winning combination.

Litigation and internal investigation matters in the funds industry often revolve around difficult litigation, strategic and regulatory questions. Through collaboration and team work, our litigators and regulatory lawyers are able to provide clients with the most effective and efficient representation possible.

Regulatory and Internal Investigations Assignments

• We conducted an internal investigation on behalf of the board of a billion dollar fund managed by one of the largest U.S. asset managers in connection with an internal investigation triggered by an ex-employee who alleged accounting and other improprieties.
  
  
• We represented an asset management firm in connection with an inquiry from a state attorney general’s office concerning the propriety of investments made on behalf of the state’s public employee pension fund. The attorney general’s office took no further action upon reviewing the response we prepared for the client.
  
  
• We conducted an internal investigation on behalf of the board of directors of a major fund complex where the Chief Compliance Officer (CCO) resigned alleging issues with the compliance environment and level of support and cooperation that the CCO had received during her tenure. A written Davis Polk report was prepared for the board of directors and later provided to the SEC. The SEC took no further action after reading the report.
  
  
• We are representing a major U.K. adviser in connection with an internal investigation and negotiation with the SEC and the FSA over compliance and conflict of interest issues.
  
  
• We represent an investment fund in connection with an SEC inquiry into CDO-related issues.
  
  
• We represented an individual in connection with the Galleon Group insider trading investigation.
  
  
• We represent numerous investment advisers and funds on issues relating to material, non-public information, including defending our clients in regulatory investigations, conducting internal investigations, advising on particular transactions and providing advice on internal policies, procedures and controls.
  
  
• We represent several private equity funds in the SEC’s ongoing investigation into potential pay-to-play issues in connection with private equity and hedge fund investments by public pension funds.

Litigation Assignments

• We represented a unit of Credit Suisse Securities as plaintiffs in an action for fraud against a private equity fund in connection with more than $700 million in loans made by a Credit Suisse-managed fund.
  
  
• We successfully represented a series of private equity funds managed by Metalmark Capital in a lawsuit alleging breach of contract that resulted in a summary judgment decision in Metalmark Capital's favor in the Commercial Division of New York Supreme Court.
  
  
• We represent a major hedge fund in connection with a contract dispute relating to its majority interest in a foreign investment fund.
  
  
• We represented Amaranth, a hedge fund, in connection with an administrative proceeding before the Federal Energy Regulatory Commission and a class action alleging market manipulation in the Southern District of New York.
  
  
• We represented GSC Group and a hedge fund managed by GSC Group in litigation brought in the Commercial Division of New York Supreme Court. Plaintiff fund investors alleged that they suffered losses when the subprime mortgage debt instruments, in which the fund invested, deteriorated substantially. The Court dismissed all claims against GSC Group.
   
• We represented a foreign financial institution in a dispute regarding its investment in a U.S.-based hedge fund adviser.