Private Funds Courting Bank-Affiliated Limited Partners: U.S. Bank Holding Company Act Regulations & Issues

On 24 February 2021, Seoul partner Eric Yoon co-hosted a webinar with the Korean In-house Counsel Association, entitled “Private Funds Courting Bank-Affiliated Limited Partners: U.S. Bank Holding Company Act Regulations & Issues”, where he highlighted common issues outbound Korean private funds/aggregation vehicles with a U.S. nexus face when accepting investments from Korean limited partners that are affiliated with one of the seven Korean bank holding companies – namely, Hana Bank, Industrial Bank of Korea, Kookmin Bank, Korea Development Bank, Nonghyup Bank, Shinhan Bank, and Woori Bank.

Specifically, he explained certain restrictions imposed under the U.S. Banking Holding Company Act of 1956, including the non-banking activities restrictions under Section 4 and the Volcker Rule (Section 13).