HEDGE FUND AND PRIVATE EQUITY INVESTMENT IN FINANCIAL INSTITUTIONS

We have considerable breadth and depth of experience in counseling hedge and private equity funds and their investment advisors in working through the implications of the rules and policies that apply to both controlling and non-controlling investments in financial institutions and their holding companies, including the recent policy statements from the FDIC and Federal Reserve on private capital investments in banks and bank holding companies. Our experience includes structuring investment vehicles to make such investments and the forms in which such investments will be made, negotiating the relevant documentation, and working with the funds and the regulators in either obtaining the appropriate regulatory approvals for such investments, or in addressing any presumption of control by negotiating "custom tailored" passivity agreements or rebuttal of control agreements that may be required to ensure that such investment remain passive.