Nonequity Spots May Entice Lateral Partners: Experts

Law360, New York (March 10, 2009, 12:00 AM EDT) -- As the strained credit landscape forces firms to raise capital through increased partner contributions, nonequity positions may become more attractive to partners considering lateral moves, industry experts say.

Faced with depleted capital reserves and expensive bank lending, more firms are rethinking their business policies and models by increasing partner contributions, requiring income partners to contribute and making it more difficult for partners to get their contribution back when they leave the firm.

Some lateral partners are considering nonequity positions partly to avoid paying capital contributions, according...
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