Private equity and venture capital funds frequently obtain the right to designate one or more directors of portfolio companies in which they invest, and the new director owes obligations of care and loyalty to both the investment fund and the portfolio company as a dual fiduciary.

However, as the director may need to consult with experts such as lawyers, there is risk that privilege will be lost if one is to share privileged information with individuals outside of the portfolio company. An article recently co-authored by three Pillsbury attorneys investigates such risks—offering practical suggestions regarding corporate policy on confidentiality and waiving privilege.

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