Restrictive covenants in investment agreements: Enforceability issues

This case serves as a critical reminder for private equity, venture capital and other institutional investors: the courts will carefully scrutinise, and potentially invalidate, overly restrictive covenants within investment agreements. The judgment underscores the importance of ensuring such provisions are reasonable in scope and duration, and tailored for the specific employee to whom they apply, to align with legal standards regarding restraint of trade.