Partner interviewed by ‘The Deal’ on hidden crypto pitfalls for PE firms
Private Equity Partner Ian Ivory was recently interviewed by The Deal on the hidden crypto pitfalls private equity firms could face.
PE buyers are urged to consider additional due diligence when investing in companies with a presence in the metaverse, crypto currencies and other digital currencies and failure to do so could lead to unexpected losses. Most of the larger technology-focused investors have in-house teams with the expertise able to assess the value and risks but many mid-cap firms don’t. It’s a real issue for them when faced with a lack of protection of a company’s brands, IP and general presence on the metaverse or no strategy around crypto payments, leaving them exposed.
There are still gray areas around regulation and legal definitions specific to technologies such as those mentioned, with regulation still to catch up with the technology.
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