The SEC and DOJ are continuing to investigate and prosecute insider trading cases at a rate not seen in a generation or more, and even the New York State Attorney General has become involved in the area. The popular and legal press have focused attention on the prominence of some of the targets, the increasingly disparate success rates of the Manhattan U.S. Attorney’s Office and the SEC, and the anticipated ruling from the Second Circuit on remote tippee liability. But several other developments may carry greater practical significance for most hedge fund managers and other members of the financial services industry. Those developments, which are explored in this issue of SRZ’s Insider Trading Developments newsletter, highlight the potential for insider trading prohibitions and remedies to extend beyond where one might normally expect, which, in turn, could affect portfolio managers, investment management compliance officers and other industry personnel in ways not necessarily anticipated.

Schulte Roth & Zabel attorneys have written a comprehensive new book on hedge funds for both fund sponsors and investors. Hedge Funds: Formation, Operation and Regulation, published by ALM’s Law Journal Press, is an up-to-date and forward-looking guide that clearly and fully explains the complete spectrum of hedge fund investment structuring, operations and regulation.

As the hedge fund industry has grown dramatically in size and complexity, it has become both an important part of global asset management and the focus of new legislation and regulation. This all-encompassing book provides an expert look at the state of the industry, providing legal and practical insights into taxation, regulation, documentation, and strategic issues. Specific topics include hedge fund investment strategies and structuring a hedge fund management company, domestic and off-shore hedge fund structures and tax considerations, terms, fees and related considerations, regulatory requirements and fiduciary obligations of investment advisors, and fund documentation, including marketing materials, offering memoranda and governing documents.

Offering an unparalleled understanding of the legal and operational aspects of the hedge fund industry, the SRZ authors represent a broad range of practices and include investment management partners Stephanie R. Breslow, David J. Efron, David Nissenbaum, Paul N. Roth, Jennifer Dunn, Christopher Hilditch, Daniel F. Hunter and Jason S. Kaplan; investment management regulatory & compliance partner Marc E. Elovitz; employment & employee benefits partners David M. Cohen and Holly H. Weiss; finance & derivatives partners Daniel V. Oshinsky and Craig Stein; mergers & acquisitions partner Peter Jonathan Halasz; and tax partners Philippe Benedict and Shlomo C. Twerski. The authors also received significant contributions from litigation attorney Betty Santangelo, as well as associate Patrick Dundas; tax partner David Wermuth and special counsel David S. Griffel; and former Schulte lawyers Brad L. Caswell, Nancy R. Finkelstein, Steven J. Fredman, Kenneth S. Gerstein, Lawrence S. Goldberg, Benjamin A. Newman, Jacob Preiserowicz, Joseph Suh, and Joseph P. Vitale.

The advantage of raising money through a private investment in public equity (PIPE) transaction is the relative speed with which PIPE transactions can be completed. In this article, SRZ partner Eleazer Klein and special counsel Adriana Schwartz and Lowenstein Sandler partners Steven E. Siesser and Steven M. Skolnick discuss the key elements of conducting a PIPE transaction, including the required deliverables for both the issuer and investor and the current regulations that govern pre- and post-closing matters.

This article is excerpted from Lexis® Practice Advisor, a comprehensive practical guidance resource providing insight from leading practitioners on the topics critical to attorneys who handle transactional matters.

A private investment in public equity, or PIPE, is an alternative financing option for public companies from traditional capital markets transactions. In this Law360 article, SRZ partner Eleazer Klein and special counsel Adriana Schwartz and Lowenstein Sandler partners Steven E. Siesser and Steven M. Skolnick provide an overview of PIPE transactions, including the current regulations regarding applicable PIPEs and key considerations when structuring a PIPE transaction.

This article is excerpted from Lexis® Practice Advisor, a comprehensive practical guidance resource providing insight from leading practitioners on the topics critical to attorneys who handle transactional matters.

In the fourth quarter of 2012, SRZ commissioned mergermarket to interview investment bankers, private equity practitioners and hedge fund investors regarding their outlook for distressed M&A activity over the next year. The result is a report that provides key findings on the role of macroeconomic and political factors in driving transactions, as well as insights into pricing, litigation, club deals and various other issues concerning the distressed M&A community.

Respondents were asked questions on pricing considerations and trends for distressed assets and companies in and outside of the U.S., the sectors representing the best distressed investing opportunities, forecasts of the most common distressed investing type of transaction and much more. SRZ partners Stuart D. Freedman, Adam C. Harris, David J. Karp and Kurt F. Rosell and former SRZ attorneys Frederic L. Ragucci and David E. Rosewater were instrumental in providing commentary and insight throughout the report. Former SRZ attorneys Karen S. Park and Elliott Tapp assisted with the report.

The firm has a preeminent practice specialty in the area of distressed investing — with an interdisciplinary team of experienced professionals to handle the unique structuring, strategic, diligence, finance and documentation issues that arise in distressed M&A transactions — and has been counsel in many high-profile distressed investing transactions of all sizes and types.