PE HUB Wire Highlights, 12.4.18

SEC slaps once high-flying BDC manager Fifth Street; Why regulatory due diligence is essential in healthcare PE deals; Wall Street freezes out women in #metoo backlash

It’s Tuesday, Hubsters.

#metoo backlash: Wall Street executives have opted to change their behavior but not in a good way, according to Bloomberg, which interviewed more than 30 executives. Men are avoiding women “at all costs” and have adopted controversial strategies like not taking dinners with female colleagues, not sitting next to them on flights and avoiding one-on-one meetings to avoid allegations of sexual harassment, the story said.

Bess Levin, of Vanity Fair, said normal people who are not suspected to be sexual predators shouldn’t find it that difficult to identify bad things like rape, unwanted touching, asking employees out on dates and commenting on colleagues’ appearances. But apparently, they do. Instead of “acting like a professional human adult,” execs are shunning women entirely, Levin said. Because of these behaviors, Wall Street is risking becoming more a boys club rather than less of one, Bloomberg said.

Now I find this blacklash to the #metoo movement rather stunning. I will say that many men likely don’t have this problem but some do. I ask you, Hubsters, have you encountered this? Are you participating? Do you find yourself in the position of avoiding individual meetings with women? For my women colleagues, are you experiencing this and how often? Are these strategies overkill and unnecessary? Why or why not? Email me at lbeltran@buyoutsinsider.com

Healthcare: We have a column this morning from Jeffrey Mittleman and Jenna Schapiro ofHolland & Knight, who write about the heightened need for regulatory due diligence in healthcare transactions. Read the article here.

Many limited partners are seeking additional expertise in specific industry sectors, and a majority see healthcare and pharma as areas rich in opportunity, Dietrich Knauth is reporting.

In the SEC crosshairs: Chris has a story on Fifth Street Management, the once high-flying BDC manager whose fortunes collapsed on some bad investments. The firm has settled with the SEC for allegedly overvaluing certain portfolio investments held in a business development company the firm used to run. Read his story here.

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