Election 2024: Dechert Shares Views on Potential Impacts Across Key Sectors

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Oct 29, 2024, 11:27 ET

NEW YORK, Oct. 29, 2024 /PRNewswire/ -- The 2024 U.S. presidential election is likely to reshape the operating landscape for businesses across sectors and Dechert today launched Election 2024: Impact on Business. The online portal provides insight into anticipated policy and regulatory shifts a future Trump or Harris administration may make and the associated implications across the private equity, private credit, real estate, technology, private client and life sciences sectors.

While positive economic trends such as waning inflation, anticipated interest rate cuts and cautious optimism for a soft landing suggests robust growth for many sectors heading into 2025, the election cycle has introduced temporary uncertainty. Understanding the potential regulatory changes, areas of investment scrutiny, tax policies, antitrust implications, labor reforms, or other market dynamics can help business leaders better prepare to navigate the evolving landscape.

Anticipated policy and regulatory changes are grouped by sector and include:

Private Equity and Private Credit

Changes implemented by a new Trump administration could foster more robust M&A activity in energy, U.S.-based manufacturing, and fintech while reducing support for renewables. Deregulation and tax cuts may lower compliance costs but increase risks, while heightened scrutiny on foreign investments and shifts in antitrust policies could create a more business-friendly environment but pose compliance challenges.

A Harris administration is expected to continue robust regulatory activity and support for green energy and infrastructure, fostering M&A activity in these sectors, while increasing regulatory pressures on fossil fuels. Stricter bank oversight may benefit private credit lenders, while increased scrutiny on tech deals and foreign investments, coupled with tax changes, might raise compliance costs.

Real Estate

Under a Harris administration, the real estate sector is expected to encounter a mix of regulatory changes, tax policies and labor reforms. While increased compliance costs and operating expenses might pose short-term challenges, initiatives aimed at promoting green energy and affordable housing could fuel growth in sustainable and accessible real estate development.

Under a Trump administration, the real estate sector will likely face new circumstances defined by deregulation, leadership changes and tax reforms. While reduced compliance costs and regulatory burdens might pose short-term benefits, the potential risks associated with significant deregulation and environmental policy changes could impact long-term sustainability.

Technology

A Trump administration is expected to continue a business-friendly regulatory environment, focusing on reducing federal oversight and encouraging innovation in the technology sector. However, potential changes in tax policies, labor laws and trade tariffs may pose challenges.

A Harris administration is expected to continue robust regulatory activity and support for AI regulation, privacy and cybersecurity, fostering trust and reliability in technology. However, increased regulatory scrutiny, potential tax changes and new labor policies may pose challenges for the technology sector.

Private Client

A Trump administration could introduce major policy changes, including a reduction in federal oversight and the implantation of pro-business tax policies. However, these changes may present challenges, particularly in terms of navigating new regulatory landscapes and potential supply chain disruptions.

A Harris administration is anticipated to introduce substantial policy changes, including higher tax rates for high earners, new tax regulations and extra assistance for start-up businesses and first-time homebuyers. However, these changes may require navigating new regulatory landscapes and potential tax liabilities.

Life Sciences

A Harris administration could bring significant policy shifts, focusing on strengthening intellectual property rights, implementing labor reforms and adjusting tax policies. However, these changes may present challenges, particularly in terms of increased enforcement in healthcare and life sciences sectors.

A Trump administration is also expected to bring significant policy shifts, focusing on reducing federal oversight, fostering innovation and implementing business-friendly tax policies. However, these changes may introduce difficulties, particularly in terms of navigating new regulatory landscapes and potential supply chain disruptions.

The ability of a Trump or Harris administration to enact their plans will depend on the outcome of the congressional elections. Strategic planning and comprehensive due diligence can help organizations effectively navigate changes implemented by the incoming administration.

To read the in-depth analyses of each sector, visit Election 2024: Impact on Business here.

About Dechert
Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital – from high-stakes litigation to complex transactions and regulatory matters. We answer questions that seem unsolvable, develop deal structures that are new to the market and protect clients' rights in extreme situations. Our nearly 1,000 lawyers across 20 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology sectors.

SOURCE Dechert LLP