Fund managers have an interesting habit of making fervent LP interest in different areas a feature, rather than a bug, that they can exploit. For example, fund managers are using ardent LP interest in co‑investment opportunities to front a larger portion of equity investments, allowing their funds to preserve capital for potential liquidity needs in the recession. There is occasionally a dark side to fund managers’ efforts, however, such as the rise in potential greenwashing issues as managers seek to capitalize on LP demands for environmental, social and governance (ESG) investing opportunities. As a result, the SEC and state governments are both stepping in, albeit in wildly different ways – and with very different objectives – to regulate and control ESG investing efforts. Those and other topics were explored at a recent Morgan Lewis conference that featured attorneys Gregg S. Buksbaum, Jarrod A. Huffman, Monica H. Chang, Kelly L. Gibson and Zeke Johnson. This second article in a two-part series considers how co‑investment opportunities are being impacted by the impending global recession, along with offering updates on recent state and federal regulatory efforts targeting ESG investing. The first article addressed some market dynamics and pressures driving trends in several key areas, as well as the latest developments in the secondary market. For coverage of other recent industry developments, see “Report on Trends in Key PE Fund Terms Reveals Latest Push‑Pull of Negotiating Dynamics Between LPs and GPs” (Nov. 1, 2022).