New U.S. Outbound Investment Rules: What Investors and Fund Sponsors Need to Know

At the beginning of this month, new U.S. outbound investment rules came into effect. Although primarily focusing on China (including Hong Kong and Macau), these new regulations have broad-reaching implications for investors and fund sponsors, impacting fund investments, co-investments, secondary transactions, and direct acquisitions.

Navigating these rules will greatly depend on the specific structure and facts of the proposed investment. Both investors and fund sponsors will want to think about how they'll comply with the new regulations. 

To help, our colleagues, Ama Adams and Brendan Hanifin, have provided comprehensive guidance on this topic in their article, "Treasury Finalizes China-Focused Outbound Investment Security Program Rule”.

This is a very fact-dependent and evolving area of the law. We are closely monitoring developments and are available to address any questions you may have. Feel free to reach out to us or our colleagues for live assistance.

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