Sullivan & Cromwell provides a full range of advice to alternative investment management clients, including hedge funds, private equity funds and other alternative investment vehicles. The Firm also represents commercial banks, investment banks and principals in connection with sponsorship, investments, formation and other relationships with alternative asset managers and funds.

Part of S&C’s financial services practice area, the Alternative Investment Management Group works closely with clients on regulatory, advisory, transactional and fund-formation matters. The practice involves work with some of the largest and most sophisticated managers in the alternative investment management community. S&C provides customized and specific advice on regulatory and transactional matters for select managers that seek the Firm’s expertise.
 
In an era of increasing regulatory complexity, S&C takes an interdisciplinary approach to the alternative investment management practice, drawing on decades of market experience, strong relationships with regulators, and pre-eminence in the Firm’s practice areas, which include:
 
  • investment management;
  • private equity;
  • commodities, futures and derivatives;
  • tax;
  • financial institutions;
  • litigation;
  • corporate and finance;
  • M&A; and
  • executive compensation.

Regulatory
S&C advises alternative investment management clients around the world on a wide variety of important regulatory matters. The Firm deals on a regular basis, and at all levels, with securities, commodities, banking and other regulatory and governmental agencies. S&C has extensive experience with the Investment Advisers Act, the Investment Company Act, the Commodity Exchange Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act and related rulemakings, and their impact on alternative investment managers, including private equity and hedge funds. S&C has experience assisting banking organizations in navigating sponsorship of hedge funds and private equity funds under the Volcker Rule, as well as experience with the Title VII regulation of derivatives.

Transactional
The Firm takes a multidisciplinary approach to mergers, acquisitions and dispositions of, and investments in, alternative investment management companies and has advised on some of the most complex and innovative transactions in the industry. S&C represents U.S. and non-U.S. investment advisers, investment banks, insurance companies, broker-dealers and diversified financial services firms in mergers and acquisitions, joint ventures, financings and related corporate transactions involving alternative investment managers.

The Firm also represents private equity funds in a broad range of acquisition, financing and disposition transactions involving portfolio companies. In executing these diverse transactions, S&C lawyers draw upon the Firm’s vast experience and expertise in asset management, financial institutions, M&A, leveraged finance, capital markets and tax.

Management Company and Fund Formation
S&C has significant experience in the structuring and formation of alternative investment management companies. Its lawyers work closely with private fund sponsors to integrate their management principles into the organizational documents that govern their management companies. In addition, the Alternative Investment Management Group collaborates closely with the Tax, Executive Compensation and Estates & Personal Groups to align business and individual financial goals. S&C structures plans that minimize estate, gift and other taxes incurred by fund managers and business owners, and it develops compensation arrangements between executives and employees, including in the context of transition and succession planning. The practice takes a comprehensive approach to advising clients on the complete range of governance, estate planning and compensation arrangements in connection with potential mergers and acquisitions, joint ventures and IPOs.

S&C also has significant expertise in the structuring and formation of hedge funds and private equity funds, and it has unique expertise in accessing the public market through the establishment of permanent capital vehicles. Its tax lawyers are experts in the many tax structures required by various U.S. tax-exempt, non-U.S. and sovereign wealth investors to create the most tax-efficient structure for all investors.

Other Advisory
In addition to advising on regulatory matters, S&C advises clients in connection with examination, enforcement, investigations and related matters. The Firm represents alternative investment management clients in their interactions with government agencies and self-regulatory organizations and in litigation matters. Many of the Firm’s lawyers have extensive backgrounds in government service, strengthened by regular appearances before federal and state regulators and courts. S&C litigators have been at the center of the most sensitive criminal defense and investigative matters.
 
Lawyers in the Alternative Investment Management Group work closely with lawyers in the M&A Private Equity and Investment Management groups.