Governance implications of CFIUS reform for US investment funds with foreign investors

Purpose To explain how corporate governance is likely to be affected by drastic changes to national security reviews by the Committee on Foreign Investment in the United States (CFIUS), especially for US funds with foreign investors. Design/methodology/approach The article summarizes the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and then details the pilot program and how to qualify for exceptions. Findings While many questions and considerations remain, including how FIRRMA will play out across various industries, we concluded that there will be an increase in CFIUS filings. Originality/value Practical guidance from experienced national security and CFIUS lawyers.