Its been another tough week for the beleaguered world of private equity. Not only were there revelations of more fishy tax treatments by Blackstone and others, but a New York Law Journal article reviewed the torrent of litigation that has been unleashed against private equity deals. 

The new fear is that senior management may be incentivized to pave the way for a sale to a private equity firm without due regard for the interests of stockholders, wrote Weil Gotshal partner Joseph Allerhand. Management participation in these transactions has drawn sharp criticism from a number of commentators and even a  call by one for outlawing such transactions altogether.” 

The article, referencing Delaware court cases Lear and Topps, said: “The Delaware Court of Chancery has taken note of the rising tide of private equity transactions as well as seemingly new fiduciary duty issues raised by the participation of senior management in these buyouts.”With criticism of private equity popping up all over the place, its no surprise KKR opted to bury its own IPO under Fourth of July fireworks.