This discovery traces ownership through holding companies, real estate entities, and management companies to identify investment owners and their role in operational decisions. CMS now requires disclosure of ownership and management information.
Related-party transactions between affiliated entities are a focus.
Alternative Names:
PE Ownership Discovery, Investor Ownership Discovery
Why it Matters?
Research associating private equity ownership with changes in staffing and outcomes has made this a standard discovery theme, and plaintiff counsel pursue it to reach capital above the thinly capitalized operator. Related-party transactions are the specific target: rent paid to an affiliated property entity and management fees to an affiliated manager can move margin out of the operating company while leaving it unable to fund staffing. CMS ownership disclosure has made the structures easier to map.
Frequently Confused with
Related terms
Frequently asked questions
What does this discovery target?
Has ownership information become easier to obtain?
