Managing conflicts at deal speed

August 06, 2025

How to manage the growing complexity of client and principal conflicts as private markets expand

Client relationships today often defy easy categorization. A client can be a sponsor, borrower, lender, LP, GP, board member and personal investor — often within the same firm. Traditional conflict frameworks, originally designed for episodic M&A, weren’t built to track this type of continuous, shape-shifting exposure.

Of course, most firms have solid processes to identify relationship risks, such as conflict policies, well-staffed control rooms and surveillance protocols. And some might say these are good enough. Problem is, they’re not. As firms deepen their push into private markets and expand complex client relationships, traditional models are being increasingly tested.

This article looks at how leading institutions are rethinking conflict management as a strategic differentiator. The firms that can ingest complexity, adjudicate conflicts in fluid deal scenarios and execute decisions across silos can reinforce control and turn structural complexity into commercial advantage.