News & Events

Corporate Partner Rajib Chanda was quoted in BoardIQ, a Financial Times news service, in an article “Directors Hold Significant Power in Fund Firm Mergers.” The article discusses the continued consolidation of the funds market and how current market conditions will affect boards involvement with management on the considerations of a merger or acquisition. A board has many options when faced with a merger or acquisition, including the right to ask the adviser about its long-term plan and sustainability of the business. As Rajib commented, “I don’t think boards push any particular direction, but it’s fair for the board to look at the long-term business strategy and to ask the adviser to explain the strategy, especially if it’s a smaller adviser dependent on a few key individuals.” He also goes on to note that boards do have the power to do certain things that have the effect of stopping a deal like not approving the adviser.

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