As has been widely reported, digital infrastructure has become one of the fastest growing investment structures in recent years, most recently driven by the explosion in demand from firms in the artificial intelligence (AI) industry. This in turn has led to unprecedented needs for capex spending for the construction, expansion and upgrading of data centers, cell towers and networks, fiber optics and other data transmission facilities and power production and transmission.
An action recently filed in the Delaware Court of Chancery challenging a continuation vehicle transaction offers a rare public window into a dispute over a GP-led transaction. The complaint alleges issues around valuation, disclosure and economic terms, and highlights the conflicts and process risks that can arise in these transactions.
Private credit has become an essential source of financing globally, with fund sponsors enjoying strong demand from borrowers, market participants, and investors. However, as the industry’s “golden age” continues, regulatory scrutiny is growing. Media coverage and legislative inquiries have pressured agencies — particularly the SEC — to take action.