Schulte Roth & Zabel has “had a very good run recently” in private equity work, according to one peer. The firm’s practice feeds off its dominance in hedge funds....
[more]
Schulte Roth & Zabel has “had a very good run recently” in private equity work, according to one peer. The firm’s practice feeds off its dominance in hedge funds. Another competitor says, “Schulte has a good marquee client in Cerebus, who look like they are becoming active again.”
In April 2011, the firm represented Cerebus in its sale of Chrysler Financial to TD Bank Group for $6.3 billion. TD Bank, a wholly owned subsidiary of TD, acquired Chrysler Financial in the US and Canada. Through the acquisition, TD obtained all of Chrysler Financial's processes and technology and its retail assets in both countries. The deal closed in April 2011.
In another notable transaction, the firm advised private equity firm Veritas Capital on its acquisition of Lockheed Martin 's Enterprise Integration Group business, which provides engineering and intelligence services, for $815 million. The transaction, which was structured as an asset purchase, closed in November 2010.
[hide]
As a dominant force in the hedge fund space, rivals say that Schulte Roth & Zabel is "unquestionably in tier one" for hedge funds. The firm has over 40 years of experience in investment fund formation, and many of its practice areas benefit from its strength in this area....
[more]
As a dominant force in the hedge fund space, rivals say that Schulte Roth & Zabel is "unquestionably in tier one" for hedge funds. The firm has over 40 years of experience in investment fund formation, and many of its practice areas benefit from its strength in this area. "They are certainly heads and shoulder above everyone else in the hedge fund market and they have grown the funds formation part of that," says one competitor.
A client of the firm says, "I think they are very smart, and very logged into what's happening in the industry." The client singles out "exceptional" partner Stephanie Breslow, co-head of the investment management group and a member of the firm's executive committee, for praise. "She's very smart, very analytical, and understands the hedge fund business," he says. In 2010, the firm added partner Daniel Hunter, who works with hedge funds, hybrid funds and private equity funds, to its New York office. Founding partner Paul Roth, who chairs the firm's investment management group, is described by one peer as "the dean of the bar".
The firm represented the asset management division of Credit Suisse in its acquisition of a significant non-controlling, minority interest in York Capital Management for $425 million in up-front consideration. York is a global hedge fund with approximately $14 billion in assets under management. The transaction, which was the first of its kind to be structured in compliance with Dodd-Frank, closed in November 2010.
[hide]
Schulte Roth & Zabel breaks into the restructuring and insolvency rankings this year following peer recommendation. "It's an extremely good firm," says one competitor....
[more]
Schulte Roth & Zabel breaks into the restructuring and insolvency rankings this year following peer recommendation. "It's an extremely good firm," says one competitor. "They do lots of work for Cerebus." Partner Michael Cook is widely admired. "He's an icon, he's just first class," says one rival. In 2010, the firm acquired partner Brian Pfeiffer from Fried Frank Harris Shriver & Jacobson.
Recent triumphs include the firm's successful representation of a group of second lien, mezzanine and junior mezzanine lenders holding $400 million of secured debt in the large multi-national Chapter 11 reorganisation of Almatis. The victory followed 18 months of difficult negotiations. In September 2010, the court confirmed a reorganisation plan which gave the lenders a combination of cash, secured notes and 40% of the equity in the reorganised debtors.
In another notable case, the firm acted as counsel for noteholders in the Chapter 11 case of of laser and motor device manufacturer GSI Group and others. The noteholders, which included Goldman Sachs affiliate Liberty Harbor, Highbridge Capital Management, Tennenbaum Capital, Hale Capital and Tinicum Capital, were owed over $210 million by GSI. In May 2010, the court confirmed a plan of reorganisation which granted the noteholders new secured debt, new equity and a rights offering to existing shareholders of up to $85 million of new equity, which was backstopped by the noteholders.
[hide]