Davis Polk partner and Investment Management head Leor Landa was quoted in Private Equity Law Report in part three of its series on contingent dislocation funds discussing the risks of the funds. Leor noted that CDFs are typically only offered by fund managers with “meaningful credibility.” He said, “That does not necessarily mean they are huge managers. Instead, they have great reputations, are institutional and have a strong relationship with a solid, steady investor base.”

Leor also pointed out, “Investors in CDFs need to be able to both fund during likely distressed situations and to have access to capital at all relevant times because you never know when the conditions might get triggered and require capital contributions in short order.”

“Contingent Dislocation Funds and Market Disruptions: Suitable Fund Participants and Potential Downsides to Avoid (Part Three of Three),” Private Equity Law Report (March 29, 2022) (subscription requited)

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