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    May 28, 2026

Core Asset Descriptions and Related Return Drivers of Various Private Credit Asset Classes (Part One of Two)

The private credit industry has evolved dramatically over the past decade. What began with relatively straightforward direct lending has since expanded into a dizzying array of funding arrangements and assets that each have their own unique traits and considerations. That proliferation of sub-strategies has spurred the development of numerous types of fund structures and variations in distribution mechanics designed to address the diverse needs of all applicable parties involved in the fund process. Against that backdrop, sponsors need to design fund waterfall structures to suit the characteristics of the underlying portfolio construction. Yield-oriented strategies emphasizing current income (e.g., senior direct lending) favor current income-driven structures that align GP incentives with income generation, while providing LPs with regular distributions. Conversely, opportunistic and capital appreciation-oriented strategies (e.g., distressed debt) typically employ the more conventional carry structures in traditional European or modified American-style waterfalls. This first article in a two-part guest series by Willkie Farr partners Samuel Weber and John M. Knapke describes the core asset types, features, complications and return profiles of various private credit asset classes, including infrastructure debt and dislocation funds. The second article will outline several types of waterfall structures – and relevant variations within each – that are used to align with the risk, reward and return profiles of each asset class. See “Evolution of the Private Credit Industry and Ongoing Challenges” (Feb. 19, 2026).

DOL Proposal on Alternative Assets in 401(k) Plans: Six‑Factor Safe Harbor to Satisfy Duty of Prudence (Part Two of Two)

On the heels of President Donald J. Trump’s executive order in August 2025 (Executive Order), the private funds industry has eagerly awaited guidance from the U.S. Department of Labor (DOL) to further promote the retailization of the private markets. That arrived in the form of the DOL’s proposed regulations (Proposal), which established a process-based safe harbor that plan fiduciaries could reference to satisfy their duty of prudence under the Employee Retirement Income Security Act of 1974 (ERISA) when including alternative assets in employer-sponsored 401(k) plans and other participant-directed defined contribution plans. Although the safe harbor offers a helpful path for plan fiduciaries to follow, a number of ambiguities remain that the industry will want to address before the comment period ends on June 1, 2026. Among the concerns raised by legal experts interviewed by the Private Equity Law Report, the Proposal inadequately accounts for the difficulties some plan participants may have in understanding the fee structures of alternative assets – and their distinct differences to traditional plan assets – to satisfy the ERISA duty of prudence. This second article in a two-part series analyzes the process-based, six-factor safe harbor in the Proposal that supplements the duty of prudence under ERISA, including some practical limitations faced by plan fiduciaries and private fund managers. The first article summarized how the Proposal clarifies the ERISA duty of prudence’s application to alternative assets, considered the Proposal’s relationship with the Executive Order and offered analysis from legal experts about its practical impact on the industry. See “SEC Investor Advisory Committee’s Recommendations to Facilitate Retail Access to Private Markets” (Oct. 30, 2025).

ILPA Study Gauges Evolving LP Sentiments Toward PE Allocations and LPA Negotiations

The Institutional Limited Partners Association (ILPA) released the results of its second annual LP sentiment study. ILPA gauged its members’ perspectives on allocations to PE; return expectations; commitment size; number of manager relationships; plans for adjusting PE exposure in 2026; staffing; changes in negotiating leverage; key negotiation issues; and co‑investments. This article discusses the key findings from the study, with commentary from Seyfarth Shaw partner Steven A. Richman and Sidley Austin partner Michael Sabin. See “Institutional LPs’ Growing Concerns Over Retailization of the Private Funds Industry (Part One of Three)” (Jan. 8, 2026).

How to Develop a Robust Due Diligence Program for Retail Products

Although private fund managers typically do not interact directly with retail investors, they may have broker-dealer affiliates that do or may choose to offer a registered product. Also, future changes to the definition of accredited investor and/or the Regulation D private offering regime could increase managers’ direct access to such investors. As both regulators and private fund managers warm to the idea of making private market investments accessible to retail investors, managers face new and unique challenges that they will need to address in their respective compliance programs. A program presented by the National Society of Compliance Professionals examined due diligence requirements – and the associated regulatory concerns – when offering investment products to retail investors, including the fiduciary obligation to ensure that investments are appropriate for each client. The program featured Miriam Lefkowitz, a compliance consultant and securities regulatory attorney; Ana D. Petrovic, director at Kroll; and James Sommerfield, Jr., senior compliance officer and principal at Wintrust Wealth Management. This article synthesizes their insights. See our two-part series on retail distribution platforms: “Growing Popularity, Numerous Benefits and Operational Obstacles” (Sep. 4, 2025); and “Selection Criteria, Due Diligence Processes and Potential Pitfalls” (Sep. 18, 2025).

Alternative Data and AI Becoming Integral to Investment Processes, Survey Finds

On February 19, 2026, Lowenstein Sandler issued the results of its sixth annual alternative data study (Report). “Our survey suggests that alternative data has become a foundational element of investment research,” Scott Moss, a Lowenstein Sandler partner and co-author of the Report, told the Private Equity Law Report. The growth may be due to increasing integration of artificial intelligence (AI). Although AI accelerates firms’ ability to generate insights and uncover alpha, it increases the need for strong governance, model risk oversight and clear data provenance, Moss noted. Firms face “a more complex commercial and governance environment with higher costs, tighter licensing terms and greater restrictions on AI-related data usage, particularly for model training,” he added. The latest survey examined the growing uptake of alternative data and AI; how firms are applying AI to alternative data; data sources; key risks and concerns; and budgeting. This article parses the Report, with additional commentary from Moss and the Report’s other co‑authors, Lowenstein Sandler partner Boris Liberman and counsel George Danenhauer. For our coverage of a previous Lowenstein Sandler survey, see “Driven by AI, Private Funds’ Use of Alternative Data Continues to Grow, Survey Finds” (May 30, 2024).

Paul Hastings Expands Investment Funds Expertise in New York

Rachel X. Shepardson has joined Paul Hastings as a partner in its investment funds and private capital practice in New York. She represents fund managers across a variety of investment strategies, including PE, credit, real estate and infrastructure funds. For insights from Paul Hastings, see “SEC 2026 Examination Priorities Highlight Classic Compliance Issues, Retailization Efforts and AI Oversight” (Jan. 8, 2026); and “Growing Popularity, Numerous Benefits and Operational Obstacles of Retail Distribution Platforms (Part One of Two)” (Sep. 4, 2025).

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Trailblazing Women – Contributions, Achievements and Observations of Outstanding Leaders

To mark International Women’s Day, Law Report Group editors, along with our colleagues across ION Analytics’ products, interviewed outstanding women in the industries and jurisdictions we cover. In this article, Jill Abitbol, Robin Barton, Rorie Norton and Megan Zwiebel profile notable women in the data privacy, cybersecurity, AI, private funds and anti-corruption law fields, including (i) Paula Howell Anderson, (ii) Gwendolyn Lee Hassan, (iii) Audrey Koh, (iv) Stacy Feuer, (v) Heather Egan, (vi) Jeewon Serrato, (vii) Stephanie Breslow, (viii) Anne Choe, (ix) Heather Wyckoff, (x) Angie Batterson, (xi) Jacqueline Eaves, and (xii) C. Dabney O’Riordan.

Enjoy reading their inspiring remarks here.