News & Events

Corporate Partner Pete Gilman was interviewed in Law360 on the recent growth in customized private equity vehicles known as “funds of one” and separately managed accounts (SMAs), and how attorneys familiar with the nuances of negotiating and crafting SMAs can capitalize on this growing area of PE fund formation. The article, titled “How Attys Can Capitalize On The ‘Funds Of One’ Craze In PE,” advised attorneys to view the upward trend as part of a larger interest in customized private equity fund arrangements. “It really is the future” and with “sponsors looking to be more creative in how they deploy capital . . . having these complementary, customized vehicles that can invest where flagship funds don’t typically is beneficial for both the sponsor and the investors,” Pete said. Pete also noted that while an attractive feature of these SMAs is the ability to customize terms for investors that “there are certain things that have to be harmonized across a program” citing an example that “it would be difficult to give a particular investor approval rights if it would have an adverse effect on the other accounts.” 

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