FTC Consent Decrees Underscore Skepticism and Scrutiny of Private Equity Firms

Twice in the past month, the Federal Trade Commission (FTC) unanimously announced consent decrees that are a strong signal of the current Commission’s intent to investigate private equity transactions aggressively.

• The consent decrees allow the private equity fund JAB Consumer Partners SCA SICAR's National Veterinary Associates to close two recent deals with some divestitures but also impose a series of strict prior notice requirements that are unprecedented in their breadth.
• The announcements come a month after the confirmation of a fifth commissioner that gave the Democrats a 3-2 majority on the FTC.
• As long as Democrats control the majority, private equity firms should be prepared for additional scrutiny and be cognizant of other competition issues that may impact them.

In this client alert, John Roberti, Melissa Maxman, Ronald Wick, David Lisner, and Derek Jackson discuss the potential implications of these rulings for private equity firms and offer insight into how PE firms can be more cognizant of competition and antitrust compliance issues that may pose a potential risk moving forward.