FTC Blocks an Interlocking Directorate Involving a Private Equity Firm

Summary

This client alert digest discusses the Federal Trade Commission's (FTC's) August 16, 2023 enforcement action resolving its concerns in a transaction between private equity firm Quantum Energy Partners and natural gas producer EQT Corporation. Most notably, the consent order alleged that an interlock was illegal, even though the entities involved were non-corporate entities. Additionally, this represents the first time the FTC has enforced Section 8 of the Clayton Act in over 40 years. Below, we discuss the challenged transaction, background on Section 8's prohibition on interlocking directorates, what violations the FTC alleged, what remedies the FTC and the parties agreed upon, and the main takeaways from the law firm client alerts.