Capital Finance | Private Equity at the edge of duty of vigilance

Maxime de Guillenchmidt, Veil Jourde partner in Litigation, comments for Les Echos Capital Finance, the entry into force of the European corporate sustainability due diligence directive “CS3D”, and the potential consequences for investment funds, which finds themselves on the edge of duty of vigilance.

 “At the due diligence stage, the funds will need to verify that the target company complies with the new obligations because the reputational risk is becoming much too significant (…) For investment funds, acquisition can sometimes lead to a build-up, and therefore trigger the duty of vigilance threshold. This will generate additional costs where, individually, the companies might not have been affected.”

Find Maxime de Guillenchmidt’s full analysis in Delphine Iweins’ article (Les Echos Capital Finance June 17th 2024 edition)