Schulte Roth & Zabel LLP

Schulte co-managing partner Marc Elovitz reacted to the latest decision by the SEC to not appeal a federal court’s decision that struck down an agency rule that required increased disclosure from private fund advisers and prohibited certain fee arrangements. In the Pensions & Investments article, “SEC doesn't appeal court's decision tossing private fund rule,” Marc noted that the SEC’s lack of action in seeking a rehearing was an expected outcome. “This was obviously a negative result for them, but if they did get it reheard, another decision could be even worse for them in terms of the language that’s used, the precedent that’s set. It’s not surprising, given the low odds of them getting a favorable result, and the risks that would be associated with getting another opinion on the subject, that the SEC seems to have cut its losses and walked away.” Marc looked forward and described how the court’s decision could impact future rulemaking by the SEC, stating, “The SEC will have to think very carefully about how it supports any final rulemaking that it does in the tail end of this administration,” he said. “If they do in fact adopt final rules on some of the authorities that were found unsound by the 5th Circuit, that will be quite controversial.” Read more: https://bit.ly/4bVz7oY #SchulteLaw

Schulte co-managing partner Marc Elovitz recently shared his perspective with the Financial Times for the article, “Transparency rules for US private funds lapse after SEC allows deadline to pass.” The US Securities and Exchange Commission (SEC) will no longer enforce transparency rules for private equity and hedge funds after choosing not to challenge a court decision that struck them down. The SEC missed Monday's deadline to request a rehearing and although they could still appeal to the US Supreme Court, the court's conservative majority is generally skeptical of administrative power, making a successful appeal unlikely. Marc commented on the impact of this development, stating, “It’s a huge defeat. It was a signature rulemaking. This decision and the implications of it are a major setback.” Read the article: https://bit.ly/4bYk2mm (subscription required) #SchulteLaw

We invite everyone attending ILTACon this year to attend the "Effective Project Stakeholder Management" panel, featuring Schulte's project management & portfolio services manager, Maura Whelan, PMP. Maura, Nicki Kastellorizios-Lee, Toby Franklin and Louis Janos, PMP, will share their wealth of knowledge on effective communication, change management and training strategies. Her contribution to this panel not only makes us proud but also reinforces our commitment to being at the forefront of industry best practices. Her panel is scheduled for Tuesday, August 13 at 3:30pm CT. #SchulteLaw #ILTACON2024 #ProjectManagement

Schulte has been shortlisted for the Hedgeweek US Awards 2024 in the “Law Firm of the Year: Overall” and “Law Firm of the Year: Digital Assets” categories. The annual Hedgeweek US Awards recognize excellence among fund managers and service providers in the US across a wide range of categories. The service provider categories span key areas of the broader hedge fund industry ecosystem. Voting is open now through August 16th. Vote for Schulte and learn more about the awards: https://bit.ly/4caJLbH #HWAwards

We are proud of our alumnus, Kyu Young (Mike) Paek, who was recently appointed US Bankruptcy Judge for the Southern District of New York. This position follows his role as Chief Deputy Clerk within the same district. Congratulations, Mike! We look forward to your continued success and impact on the legal world. Read more: https://bit.ly/4bSLhPx #SchulteLaw #SchulteAlumni

Schulte represented Mill Point Capital LLC (“Mill Point Capital”) in connection with entering into a definitive agreement to acquire the commercial refrigeration and foodservice equipment businesses of Fomento Económico Mexicano, S.A.B. de C.V. (NYSE: FMX) (“FEMSA”), doing business as Imbera and Torrey. The transaction is structured as a single corporate carve-out transaction. A newly formed affiliate of Mill Point Capital, AeriTek Global LLC, will unite FEMSA’s Imbera and Torrey businesses to form a leading manufacturer, designer and distributor of commercial refrigeration and foodservice equipment products. Mill Point Capital is a private equity firm focused on control investments in lower middle-market companies in North America across the industrials, business services and IT services sectors. Schulte’s M&A team was led by partner Benjamin Kozinn, co-chair of the M&A Group with special counsel Lauren Troeller, associates Mitchell DaSilva and Julia Cummings and law clerk Joseph D'Arco. The team also included lawyers in the Employment, Environmental, Finance and Derivatives, Intellectual Property, Investment Management, Real Estate and Tax Groups with Ted Keyes, Alexander Kim, Ian L. Levin, Joseph Reich, Greg Ruback, Adam Gartner, Hannah Hollingsworth, Ngoc Hulbig and Milagros Lopez. Mexico City-based co-counsel from Creel, García-Cuéllar, Aiza y Enríquez included Esteban Valadez Jiménez, Carlos Del Río, Alejandro Ortega García-Cuellar, Horacio Pavón Ballesteros, Patricio Demesa Morales, Eduardo Brandt, José Luis Flores Duclaud, Sebastián Martínez, Mauricio Serralde, Julio Álvarez, Joaquín Junco Álvarez and Nicole Woodward Castillo.

Looking forward to discussing the Pay-to-Play Rules and considerations for asset managers with Allison Bernbach (Scher) and Suzan Rose.

The Chambers and Partners High Net Worth Guide 2024 once again recognized Schulte as a leading law firm. In an impressive expansion, the firm added two new individual partner rankings for Susan Frunzi in Family Offices & Funds Structuring and Marnie Grossman in Private Wealth Law. As a practice group, the firm elevated its position in two categories, including Family Offices & Funds Structuring and New York Private Wealth. Firm Rankings: USA Family Offices & Funds Structuring Private Wealth Law New York Private Wealth Law Individual Rankings: USA Private Wealth Law: Eastern Region Susan Frunzi William Zabel Family Offices & Funds Structuring Susan Frunzi New York Private Wealth Law Kim Baptiste Susan Frunzi Catherine Grevers Schmidt Marnie Grossman William Zabel Read about our Individual Client Services practice: https://bit.ly/4faut9u View the rankings: https://bit.ly/3zKln34 #SchulteLaw

Schulte was ranked the #1 Counsel to Creditors, based on deal volume, for the fourth consecutive quarter in The Deal's Q2 2024 Out-of-Court Restructuring League Tables. The firm also maintained their #7 ranking for Counsel to Distressed Companies for the second consecutive quarter in 2024. The Business Reorganization Group is led by partners Adam Harris, Kristine Manoukian and Douglas Mintz. See full Q2 Restructuring League Tables: https://bit.ly/3yam84L #SchulteLaw

Schulte partners Martin Sharkey and Craig Stein spoke with 9fin for the article, “CLO legal league tables Q2 24 — Busy quarter gives opportunity for doc changes as sticky stips emerge.”     Craig described how the quarter has been marked by a significant influx of CLOs, with resets being particularly prevalent in the United States.     “We’re seeing some clients resetting practically every one of their deals, as no matter what the vintage, the spreads in those deals are wider than the market today.”     Despite the busy issuance pace, there are still many investor stipulations, indicating investor sophistication, Martin observed.    “Pushbacks we’re seeing are on reinvestment criteria, maturity amendments, and the ability to acquire loss mitigation loans (LMLs), up-tiered assets and privately rated assets.”     Craig noted that the treatment of LMLs is crucial due to the increase in out-of-court workouts and restructurings.     “How LMLs are treated in the indenture is still extremely important for managers and equity as we’re starting to see less actual bankruptcy filings and more out of court workouts and restructurings, so it’s important for managers to be able to participate.”    The CLO market is often preoccupied with potential regulatory challenges. However, Martin speculated that regulation should move to a more favorable environment with EU regulators appearing open to reducing the burden. “The bigger risk for the CLO market is geo-political shocks, like COVID or Ukraine,” Martin described.   #SchulteLaw