Due to conflicts between their objectives and functions, compliance and legal teams have been called “Departments of No” and “Business Prevention Units” while marketing and investor relations (IR) teams have been labeled “cowboys.” That strain has long existed at PE firms and tends to crop up in various contexts in the lifecycle of a private fund. Those relationships will likely be brought into sharper relief by the increased advertising flexibility and new regulatory requirements of the recent amendments to Rule 206(4)‑1 under the Investment Advisers Act of 1940. To avoid the internal disruptions and external risks associated with ongoing tension between the groups, the Private Equity Law Report interviewed former and current in-house legal, compliance, marketing and IR professionals on how to overcome those dynamics to create a healthy relationship. This first article in a two-part series discusses pressure points and factors contributing to tension between the two teams, as well as the potential consequences resulting therefrom. The second article will provide practical tips and insights for IR and compliance teams to achieve a solutions-oriented, mutually respectful partnership. See “How Compliance Departments Have Responded to the Coronavirus Pandemic” (Oct. 27, 2020).