Merchant Banking Investments and the Affiliation Trap: Aggregating Ownership Authorities

Bank holding companies (“BHCs”) have the ability to hold equity stakes in portfolio companies through multiple legal authorities. A common question under Regulation W arises when a BHC owns shares of a portfolio company under both the merchant banking authority of Section 4(k)(4)(H) or (I) of the Bank Holding Company Act and under Section 4(c)(6) … Continue reading “Merchant Banking Investments and the Affiliation Trap: Aggregating Ownership Authorities”