Winston & Strawn continues to benefit from the defection of attorneys from competitor Pillsbury.
The firm announced on Friday that securities partner Eric Green and restructuring partner Douglas Schneller have joined in New York, bringing to 18 the total number of lawyers who have moved over from Pillsbury in recent weeks. Of those who have made the move, 14 are partners, the remainder associates and counsel.
In addition to the influx of legal talent, Winston & Strawn has unveiled a new practice. Chris Zochowski, who left Pillsbury to become head of Winston’s M&A and securities practice, will also act as head of the firm’s permanent capital solutions group. Zochowski and his colleagues in this new practice will advise asset managers interested in exploring novel approaches to capital raising.
“Over the years, permanent capital has played a growing role with respect to asset managers. The world of BDC, REITS and MLP has become well developed, but capital formation activity is evolving, and asset managers are looking for new ways to raise capital and push boundaries as they diversify their investment strategy and adapt to changing market conditions,” Zochowski told IFLR1000.
Zochowski said that he receives calls from a variety of asset managers, who appreciate the fact that he is not tied to any specific structure. Typically, he and his clients will discuss goals and objectives and then Zochowski will work through assorted corporate, tax, and regulatory issues with his colleagues.
“This has allowed us to be at the forefront of developing new structures in close collaboration with our clients to meet their business needs without restricting our thinking to what has been done before,” he said.
Zochowski describes investment diversification as a critical issue for asset managers. But such factors as holding periods, investor liquidity, and the cost of capital are of equal importance, he said.
“For example, managers have seen that having a longer investment horizon provides the opportunity to better time the market. Likewise, a lower cost of capital opens up additional investment opportunities that are less appealing in a shorter-term vehicle,” Zochowski noted.
In Zochowski’s view, the benefits of permanent capital have stood out strongly in the context of the economic downturn.
“Many of the vehicles in the market fared well and have demonstrated resilience and benefits that could only be witnessed through that lens. The different roles and use of leverage in permanent capital vehicles and the ability to hold through a downturn, as the market recovers, provide a great deal of flexibility to managers,” stated Zochowski.
Zochowski and his colleagues are working with some of the biggest asset managers in the US along with a broad range of middle-market managers and private equity firms contemplating how to approach their next fundraising, he said.