Most Highly Regarded Firms: California 2009 - Private Funds
California supports a diverse commercial ecosystem from technology start-ups in Silicon Valley to multinational corporations and within this diverse climate thrives the largest number of hedge funds outside New York, Connecticut and Dallas, according to the journal InvestmentNews.
Seventeen practitioners from 10 firms are singled out as top fund counsel; they can broadly be separated into two groups: those that deal with the formation and servicing of hedge funds and those who focus on fund transactions on behalf of private equity and venture capital.
Cooley Godward Kronish LLP formed the first institutional venture capital limited partnership in the US - Draper, Gaither and Anderson - in 1959. The firm continues to possess a "superpowered" venture capital and private equity funds practice, according to our sources in the California legal community. With clients such as Hall Capital and Knightsbridge Integrated Holdings for funds of funds, Golden Gate Capital Partners for leveraged buyout funds and ChrysCapital for venture capital funds, competitors say that this group "comes up with the goods". In 2008, Cooley represented the venture capital and private equity firm Battery ventures in its acquisition of HighJump Software.
The "outstanding" Craig Dauchy heads the firm's venture capital group. "He is able to deal with almost any situation because he has probably dealt with it before," said one admiring contributor. Peers say he is "a very active member of the Bar" and he has been a National Venture Capital Association panellist on a number of occasions. Palo Alto-based John Dado has represented sponsors on dozens of funds as well as institutional investors and investment professionals on the internal affairs related to funds. Peers rate him as "a great practitioner who can be relied on to produce results." Daniel Frank is another "top-tier" partner at the firm. His practice has an "enviable international aspect": he has formed funds with investment activities in Asia and Europe. As well as his fund formation expertise, he is reported to be "extremely solid on tax matters."
Goodwin Procter LLP has expanded in California - with the creation of a fund services practice in Silicon Valley with funds experts also being added to the firm's Los Angeles office. Both practitioners listed here came to Goodwin Procter from Wilson Sonsini Goodrich & Rosati, where they co-headed the firm's fund practice. Both practitioners are considered "a fabulous team when it comes to VC matters." Clients include Sequoia Capital and VantagePoint Venture Partners. Silicon Valley partner Jonathan Axelrad is "a phenomenal funds specialist" - he has experience in forming US-based and international funds. Contributors to the survey noted Robert Fore's eight years as general counsel to Bank of America's worldwide private equity and venture capital businesses, saying "his experience both in-house and in private practice makes him understand all aspects of the deal."
In California giant Morrison & Foerster LLP's funds practice, Charles Farman from the Sacramento office is co-chair of the firm's private equity fund group and has represented institutional investors in forming over 250 domestic and foreign buyout, venture capital and other private equity funds as well as limited partner investors in 10 of the 15 largest-ever private equity funds. Farman is "an intelligent lawyer who knows private equity inside out." Co-chair of the private equity group Paul Lion operates from the Palo Alto branch and counts a number of venture capitalists such as Pequot Capital, Invesco and Lightspeed Venture Partners as clients in fund formation and private equity financings. He is chair of the ABA business section's venture capital and private equity committee.
Gunderson Dettmer Stough Villeneuve Franklin & Hachigian LLP advises on funds all over the US and also has a strong international funds practice: the firm has formed more venture capital funds in China than any other in the world. The duo that appears in this chapter hails from the firm's Silicon Valley office. Founding partner Robert Gunderson is a "phenomenal funds lawyer" who focuses on venture capital and technology, especially regarding emerging companies. Fellow founder Steven Franklin is a "top tier practitioner" and heads the tax and venture capital and private equity group, advising on issues related to the formation and operation of US and international venture capital and private equity funds.
Morgan Lewis & Bockius LLP's sole inclusion, San Francisco partner Ronald Moskovitz, received multiple nominations thanks to his "can-do approach, which has attracted high-end work." He is a specialist in the formation of venture capital funds. At O'Melveny & Myers LLP, Kathryn Sanders, US-West Coast head of investment funds group is "a pleasure to work with". She has special expertise in partnership law and the formation of private and alternative investment funds. OMM's representative clients include Actis Capital, Clarity Partners and Secured Capital Japan.
The "excellent" Siobhan McBreen Burke of Paul Hastings Janofsky & Walker LLP is "hugely experienced - top flight." Her sponsor representation attracted praise, as did her work for institutional investors including corporate and government pension plans. At Latham & Watkins LLP, Scott Klein is seen as "the go-to guy". Global chair of the firm's investment and strategic ventures practice, he is "a dab hand" at structuring and advising on the operation of private equity funds as well as joint ventures and strategic alliances.
Michael Nooney at Simpson Thacher & Bartlett LLP (considered "the Rolls Royce of funds firms" by respondents to our survey) is "a must for anyone's list", according to interviewees; he specialises in advising on the structuring and operation of both private equity and hedge funds. Sidley Austin LLP's Gary Cohen represents the firm's "world-class funds practice" in California from the Los Angeles office.
At Gibson Dunn & Crutcher LLP's Los Angeles office, Jennifer Bellah Maguire's work includes raising leveraged buyout, venture and other funds, such as Leonard Green & Partners' raising of a $5.3 billion leveraged buy-out fund in 2007. Shartsis Friese LLP's John Broadhurst represents "a great West Coast firm." Starting off advising money managers in the formation of hedge funds in the 1980s, the practice has grown into "a truly excellent regional funds group."