Journal of Political Risk, Vol. 9, No. 7, July 2021

Figure 1. Source: CFIUS Annual Reports to Congress; Ankura Analysis

Randall Cook
Senior Managing Director at Ankura

Alan Levesque
Senior Managing Director at Ankura

Waqas Shahid
Senior Managing Director at Ankura

1. Overview

This paper describes the role, value proposition, and optimal approach of the independent Third Party Monitor (“TPM”) in National Security Agreements (“NSAs”) between transaction parties and the Committee on Foreign Investment in the United States (“CFIUS”).^[1] When effectively scoped and executed, TPMs provide tailored, adaptive mitigation oversight capabilities that are a critical enabler for the dual imperatives of protecting U.S. national security interests and ensuring that U.S. enterprise and innovation continue to have access to the fuel of global capital. The TPMs persistent presence, programmatic monitoring, and deployment of industry-specific technical expertise, among other capabilities, uniquely facilitate verified, real-time, and efficient operationalization of NSA requirements; CFIUS assurance that foreign investment risks to U.S. national security are effectively and proactively mitigated; and transaction parties’ ability to operate a business that is both successful and NSA-compliant. An effective TPM approach is necessarily collaborative and adaptive, enabling a trust-based environment where all NSA stakeholder goals can be achieved through iterative, practical interaction and improvement. Continue reading →