Sharing our clients’ perspective

The hedge funds, registered investment companies and other institutional investors that are our firm’s principal clients often have very different legal and business interests than those of the broker-dealers with whom they necessarily transact. Sharing our clients’ perspective enables us to aggressively challenge unfavorable secondary loan market trends as they develop, and ensures that issues of particular importance to our clients will not be overlooked.

In the face of major consolidation among broker-dealers in the secondary market for distressed loans over the past few years, and the tendency of the remaining major broker-dealers to allocate their legal work among several firms active in the market, independent advice has never been more important. At KLF, we pride ourselves on having good working relationships with counsel for all the broker-dealers active in the distressed market, but the efforts we make to identify and pursue solutions with our clients’ counterparties never come at the expense of the independence of our advice to our clients.

We believe in sharing with, not ceding to, broker-dealer counsel responsibility for drafting disputed contractual provisions, divining new market conventions, and communicating with the agent and borrower. We analyze procedural Chapter 11 issues with a keen awareness that dealer counsel may have significantly less incentive to scope them out fully than the buyside counterparties that are actually taking the principal risk on the transaction. And we have a record of vigorously advocating buyside positions within the LSTA Forms Committee.