News
KIRKLAND'S NEW POWER DUO
August 25, 2011
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| Kirkland & Ellis may have top-ranked private equity, restructuring, and investment fund practices, but it’s not done yet. Former White & Case global head of real estate Scott Berger (right) and partner Jonathan Schechter (left) have joined the team in its quest to become the undisputed heavyweight real estate shop. Legal Bisnowsat with them in one of their first press interviews. (Scott feels it’s often better to fly under the radar, since they rep private equity funds, sovereign wealth funds, and other large capital sources.) Yet this power duo was blinking brightly on the recruiters’ screens. Despite hundreds of calls, Scott says he never interviewed with another firm in his 24-year career until now. Why Kirkland? The synergies between the firm’s strength and his practice; the commitment from the firm and chair Jeff Hammes to make the investments necessary for this practice to become a preeminent US real estate practice; and the firm’s restructuring and public M&A expertise, Scott says. |
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| The real estate private equity market is generally active, Scott says, but he’s seen the hospitality and development focus shift to distressed transactions, loan-to-own sales, workouts, and restructurings over the past three years. Though that activity continues, Scott and Jonathan are starting to see a significant uptick in new platforms and JVs for new investments. They’ve also seen a return of interest in BRIC s, having done two deals in Brazil since June and looking at one in India. Traditional PE shops not historically in the real estate sector are also starting to move in. Another trend:capital raises, which are more difficult as large pension plans and sovereign wealth funds trifurcate sponsors into “preferred,” “watch,” and “avoid,” making the strong stronger and leaving the weak behind. |
