Partner Joseph D. Zargari was quoted in a Private Equity Law Report article discussing key terms and negotiation strategies in co-investment equity commitment letters (ECLs), exploring how fund sponsors use ECLs to secure capital from co-investors, manage risk, and ensure deal certainty.
“There usually is some concept of a minimum commitment,” Joseph noted. “If a sponsor reduces it too much, then it may not be interesting for the co-investors to make that investment anymore.”