Assessing Political Risk – Advice to Fund Managers

Bingham Consulting provides in-depth strategic assessments for clients, such as hedge funds in the U.S. and abroad, that make investments in U.S-based industries that face political risks at the federal and state levels. Using our extensive understanding of the political system, we can take the facts, assess their meaning and likely outcome, and provide clients with a range of possibilities. Our analysis and insights help these sophisticated investors make informed judgments about the value of a prospective or existing investment and can help guide at-risk investments back to profitability.

For example, our experience includes representing a significant overseas hedge fund that owns a stake in a U.S. holding company and is heavily invested in a business venture that is the subject of investigations by Congress, various federal agencies and state Attorneys General. We are able to provide the hedge fund with current and factual information about what those different government agencies are doing, how they are collaborating and the likely outcomes of what they will seek. This information and insight permits our client to assess the potential impact on its investment and to adjust its strategy going forward.

Our experience also includes representing a major mutual fund company and advising its manager on the risks associated with state Attorneys General actions that might impact the bottom line of companies in which its investments are made. Our deep knowledge of the relevant public officials, their senior and career staff, and the manner in which they operate, enabled us to provide valuable assessments about the likelihood of enforcement and regulatory actions affecting business operations in a variety of sectors as well as specific companies.

With our experience across all levels of government – including regulatory, legislative, law enforcement and policy matters – Bingham Consulting can provide informed political risk analyses that give our clients the unique ability to assess how governmental actions may affect their business decisions.