Restrictive covenants can protect an organization’s confidential information and trade secrets from departing employees, but regulators have been keen to ensure those measures do not prevent individuals from generating income. As a result, it is becoming increasingly difficult for fund managers to use non-compete and non-solicitation provisions in many states, and similar measures could be implemented at the federal level in the future. To highlight the latest legal developments surrounding restrictive covenants, Gibson Dunn hosted a webcast featuring attorneys Gina Hancock, Andrew G.I. Kilberg and Ashley Romanias. This article summarizes insights and takeaways that are relevant for PE sponsors and their portfolio companies, including alternative protective measures that can be taken that are less likely to run afoul of federal and state restrictions. For additional insights from Gibson Dunn, see our two-part series on launching a secondaries platform: “Why PE Sponsors Expand Into Secondaries and Key Pre‑Considerations to Weigh” (Oct. 26, 2021); and “Unique Aspects of Fund Structuring and Information Sharing Issues” (Nov. 2, 2021).