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Message: <blockquote data-quote="xMontmorency" data-source="post: 223116" data-attributes="member: 32743">Not sure I fully understand your question but some thoughts:<ul> <li data-xf-list-type="ul">Lawyers working on structured finance transactions would be finance lawyers not private equity (corporate) lawyers.</li> <li data-xf-list-type="ul">Structured finance ≠ CLOs. Pretty sure CLOs are the biggest sub-category, but structured finance includes all kinds of financial instruments like derivatives and other wonky lending arrangements.</li> <li data-xf-list-type="ul">I don't think either Weil or Kirkland have a particularly strong structured finance practice in London. They mostly focus on borrower-side LevFin.<ul> <li data-xf-list-type="ul">Kirkland literally only has Suril Patel who basically only advises PE sponsors.</li> <li data-xf-list-type="ul">Weil does have Andrew Lauder and Jacky Kelly who do some lender side securitisation and derivatives work alongside LevFin.</li> <li data-xf-list-type="ul">But overall not much.</li> </ul></li> <li data-xf-list-type="ul">But, given structured finance is a bit of a loose concept most finance departments will come across it in some form when working for clients.</li> <li data-xf-list-type="ul">Most likely, the majority of the structured finance work Weil and Kirkland do is driven by borrower side mandates for PE clients that might involve structured forms of borrowing like margin lending, NAV financing and specific asset-backed or PIK loans in some whacky corporate structure, or work they do in restructurings.</li> <li data-xf-list-type="ul">From what I can tell I don't think either of them are building out into the CLO manager side, or the institutional bank / private credit side. If I had to guess why, I'd say: (i) structured finance is smaller and probably a little less lucrative than general LevFin, (ii) tough competition, and (iii) it might generate conflicts of interest with your borrower-side clients if you started advising lenders.</li> <li data-xf-list-type="ul">Not sure whether the question "is structured finance an important part of PE?" follows. <ul> <li data-xf-list-type="ul">CLOs are private credit since the money is raised through a private fund structure. </li> <li data-xf-list-type="ul">Derivatives are neither (I think?)</li> <li data-xf-list-type="ul">CLOs and other forms of structured finance are an important part of traditional private equity in the sense that it eases access to debt. But a private equity firm may have nothing to do with the collateralisation of the loans they have taken out.</li> <li data-xf-list-type="ul">So, for a law firm, having a dedicated securitisation / secondaries practice isn't really necessary to be able to advise PE sponsors.</li> </ul></li> </ul></blockquote>

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