Private Fund Advocates Relieved, But Not Restful, After Cali Veto

Healthcare attorney John Saran was quoted in a Private Funds CFO article about California Gov. Gavin Newsom's veto of Assembly Bill 3129 that would have regulated private equity and hedge fund-backed healthcare deals, marking a significant moment in a series of challenges faced by states on this front. Mr. Saran highlighted that this veto could signal a turning point by potentially making it more challenging for similar legislation to pass in the future, as the industry and state legislators seek a more balanced discussion regarding private equity's role in healthcare. He also advised fund managers to focus on demonstrating how their involvement can positively impact healthcare, such as improving access to care and reducing costs, as regulatory scrutiny continues.

"This veto sort of caps this summer of states struggling with these questions. Some of these bills may come back, but I feel that states may find it more difficult to pass these laws. I think industry is following these developments more closely than they have been," he said.

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