Much Ado About Nothing? The Antitrust Implications of Private Equity Club Deals

This Note addresses the antitrust issues that clubbing raises and argues that the antitrust laws should not restrict clubbing—absent some egregious conduct—and that courts should apply rule of reason analysis rather than per se rules to these sorts of antitrust claims. Part II provides a general background of antitrust law and the various standards that courts apply to private equity clubs. Part III explains private equity and fleshes out what a club deal is and how it works. Part IV discusses antitrust law within the context of joint ventures and sets out the varying standards that could apply to private equity clubs.

Part V applies the antitrust analysis to private equity clubbing. Finally, Part VI concludes by suggesting ways to deal with antitrust problems and by examining some of the underlying issues.