Key Competition Law Considerations When Transferring Portfolio Businesses To Continuation Vehicles

Key Takeaways

• Fund sponsors transferring a portfolio business to a continuation vehicle must consider whether the transfer is subject to mandatory notification under the Competition Act.
• If the existing fund and continuation vehicle are legal affiliates, they are exempt from notification.
• The transfer may be subject to notification if the financial thresholds for notification are exceeded.
• If the transfer is subject to notification, the filings must be made before closing to the Canadian Competition Bureau and the transaction cannot close until they conclude their review of the transaction and/or the statutory waiting period has expired or been waived.
• Fund sponsors should assess Competition Act implications early to avoid delays in portfolio business transfers.