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M&A may be down, but investment funds are on pace with 2021

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M&A may be down, but investment funds are on pace with 2021

Posted by: Latin Brains
Category: All, Law firms’ trends

Fund work may help soften the blow of reduced M&A deals in many law firms’ corporate departments this year. While M&A is down roughly 23% year-over-year, global assets under management have been comparable to 2021, according to data from financial monitoring company Refinitiv, and are even in a position to potentially eclipse 2021’s total by year’s end.

In line with this, big law investment funds practices have not seen the downturn that has afflicted mergers and acquisitions in 2022, with attorneys from top fund law firms saying business is as busy and competitive as ever. Practice leaders at leading funds practices are seeing hours increasing, an active lateral market, and no real reason to think things might change any time soon. Law firm fund practices, including those advising private equity firms and financial sponsors of private investment funds, are seeing a flurry of work driven by fund formation and consolidation, fundraising and an active and mature secondary market.

Investment funds lawyers say they see no reason to think that demand will be slowing any time soon. Rebecca Silberstein, Co-Head of the Debevoise’s Private Equity Group, said although traditional investors are in a tight spot for the next year or two, “the allocation of private equity and new investors having a broader interest in private equity will continue to grow.” She added: “Just looking at the past year or two, I am pretty bullish on the private funds market and for long-term growth in the legal work.”

Author: Latin Brains