The United States Court of Appeals for the First Circuit (the “Circuit Court”) recently held, in Sun Capital Partners III LP v. New England Teamsters & Trucking Industry Pension Fund, 1 that a private equity fund was a “trade or business” under the controlled group rules of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and, as a result, could be held jointly and severally liable for the pension obligations of a bankrupt portfolio company.
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