Munger, Tolles & Olson attorney Brett J. Rodda discussed the ways in which private equity firms are evolving their investment strategies in the post-Recession environment in a Daily Journal article. (“Creative juices flow at private equity funds,” March 10, 2014)
The article examines how private equity firms are increasingly operating as loan financiers or taking minority stakes in a company. As private equity firms assume a new set of investment strategies, they must also re-align the concerns they have in transactions.
“A lender needs to worry about covenants, consent rights and its place in a company’s capital structure, and those are very different things to someone who’s used to saying, ‘I own this company.’ Investing in a company rather than owning all of it entails many of the same concerns,” Mr. Rodda told the publication.
Mr. Rodda is a corporate partner in the Los Angeles office of Munger Tolles whose practice involves a range of transactions and securities matters, with a focus on representing buyers and boards of directors. He has negotiated hundreds of debt and equity investments for both private equity clients and strategic investors.