Schulte Roth & Zabel LLP

Schulte Roth & Zabel LLP Company Profile

Schulte Roth & Zabel LLP has defined itself as the go-to firm for hedge funds and their ilk. While this practice focus translates into double-digit profits and aggressive growth during boom years, the firm has, smartly, tried to diversify its offerings over the years in order to ride out the inevitable bumps in the economy.

Hedging Their Niche

Founded in 1969 by a small group of attorneys who wanted to escape the traditional BigLaw model, Schulte Roth & Zabel primarily advises clients in the financial services industry, with a particular emphasis on representing investment management firms. Relatively narrow in practice scope by BigLaw standards, Schulte trains its focus on real estate, M&A and-most notably-providing a one-stop shop for all the legal needs of hedge and private equity funds (of which it has counted hundreds as clients over the years).

With clientele ranging from GMAC to the Quigley Company Inc., Schulte made strides toward growing both its client roster and practice coverage prior to the onset of the global economic crisis, which so sharply curbed transactional and financing work. In fact, the firm has enjoyed quite a bit of success in its employment, IP, and litigation practice areas. But make no mistake-the corporate and securities work still drives the firm, which is evident from the many investment banks, hedge and private equity funds, banks, broker-dealers, investment advisers, venture capitalists and pension funds the firm counts among its clients.

Financial Services Focus

Both Schulte's New York headquarters and its comparatively new (opened in 2002) London office have been recognized for their investment management work. Schulte represents a high percentage of the brand names of the fund industry, including private equity firm Cerberus-a client since 1990. In spring 2007, Cerberus, in what hindsight proved was an ill-fated move, acquired roughly 80 percent of Chrysler. The deal was immense and complex, and like many of the other huge deals the firm runs, created work for nearly every practice group under Schulte's roof(s). Three years later, the firm was called upon to aid Cerberus in the sale of Chrysler.

A large percentage of Schulte attorneys specialize in catering to hedge funds and other investment managers. The U.K. office came to be largely due to a sharp uptick in European hedge fund activity, and more recently, the DC office was established to provide litigation and securities regulatory capability.

Focus on Service

The firm, like most, touts its commitment to pro bono work, and Schulte can certainly back up its claims. It was the first firm to place its summer associates in one-week internships with area public interest organizations and has a special counsel dedicated to overseeing its pro bono efforts. Its attorneys average over 65 hours of pro bono activity per year, and the hours spent count toward the annual billable hours requirement.

IN THE NEWS

May 2014

Mining for New Leadership
SRZ is advising the hedge fund Casablanca Capital LP on its calls for management and operational changes at Cliffs Natural Resources Inc., an Ohio-based iron ore and coal mining company. Casablanca, which has a 5.2 percent stake in the company, is seeking a variety of value maximizing changes, including the replacement of Cliffs' CEO as well as separating Cliffs' U.S. assets and international assets, increasing its dividend and cutting general and administrative costs and exploration expenses. Casablanca is seeking to have six directors elected at the company's annual shareholder meeting.

October 2013

Paying Attention in Civ Pro Pays Off
SRZ litigators and business reorganization lawyers represented Wilmington Trust Co. in a series of significant victories over the FDIC to secure ownership of an over $400 million tax refund for the Downey Financial Corp. bankruptcy estate, in which Wilmington Trust is a substantial creditor. The Delaware bankruptcy court granted summary in favor of Wilmington Trust and Downey Financial, holding that the tax refund is the property of the Downey Financial estate and therefore subject to the claims of its creditors. When the FDIC appealed, SRZ took the unusual procedural step of moving to have the appeal accelerated by bypassing the district court and going straight to the Third Circuit. The Court of Appeals granted the Wilmington Trust and Downey Financial petition to accept the certification and hear the appeal directly.

April 2013

Movin' on Up, to the West Side
SRZ successfully represented the joint venture developing Hudson Yards-a $15 billion, master-planned commercial, cultural and community center planned for 26 acres on New York City's West Side-in closing nearly $1.4 billion in equity investments and debt financing for the center's first tower. The entire Hudson Yards development is a joint venture of Related Companies and Oxford Properties Group. SRZ advised Toronto-based Oxford on the initial joint venture formation and represented the joint venture on its debt and equity financing arrangements, including its negotiations with luxury leather goods manufacturer Coach Inc. and all real estate development, leasing and funding aspects of the project.

March 2014

Trade Secret Arbitration Award Affirmed
SRZ litigators secured a victory on behalf of interdealer broker Tullett Prebon plc in a three-year, "bet the company" case brought by rival BGC Partners alleging theft of trade secrets. BGC sued Tullett in 2010 for $2 billion, claiming Tullett breached their agreement by allowing its brokers to receive SwapMarker, a Tullett product used to price swaps. BGC invoked the contract's liquidated damages provision, which provided for $500 per broker, per day. An arbitrator found the contract's damages provision unenforceable and limited BGC's recovery to $789,000 plus interest. BGC challenged the arbitrator's decision through a string of appeals, which ended with a New York Court of Appeals judgment denying BGC's motion to appeal.

Super Deals
SRZ advised Cerberus Capital Management in three major acquisitions of supermarkets and other retailers. In early 2013, Cerberus was the lead investor in a consortium's $3.3 billion acquisition of Albertsons and other grocery stores from SUPERVALU INC. Later in 2013, SRZ advised Albertson's LLC on its all-cash acquisition of United Supermarkets LLC. And in 2014, the firm advised Albertson's LLC and an investor group led by Cerberus in the $9 billion acquisition of Safeway Inc. in the largest leveraged buyout so far this year.

January 2013

Real Estate Deal of the Year
A cross-disciplinary team of SRZ lawyers represented Cerberus Capital Management LP and LNR Property LLC on the $1.05 billion sale of diversified real estate investment, finance, management and development firm LNR to Starwood Property Trust and Starwood Capital Group. In the deal, Starwood Property Trust acquired LNR business segments, including 50 percent of its interest in residential and commercial real estate exchange Auction.com, for $856 million. Starwood Capital Group acquired both LNR's US Commercial Property Group and the other 50 percent of LNR's ownership interest in Auction.com, for $197 million. The deal was named "Real Estate Sector Deal of the Year" at the 12th Annual M&A Advisor Awards.

▲ Show Less▼ Show Full Description


Schulte Roth & Zabel LLP


919 Third Avenue
New York, NY 10022
Phone: (212) 756-2000
Fax: (212) 593-5955
www.srz.com

STATS


  • Employer Type: Private
  • Managing Partner: By Executive Committee
  • Hiring Partners: William H. Gussman, Jason S. Kaplan and Taleah E. Jennings
  • Total No. Attorneys 2014: 382

  • Employment Contact

    Alissa K. Golden
    Director of Legal Recruiting
    Phone: (212) 610-7185
    Fax: (212) 593-5955
    E-mail: alissa.golden@srz.com


  • Base Salary

    1st year: $160,000
    2nd year: $170,000
    3rd year: $185,000
    4th year: $210,000
    5th year: $230,000
    6th year: $250,000
    7th year: $265,000
    Summer associate: $3,077/week


  • Summer Associate Offers

    34 out of 34 (2013)


  • Major Departments & Practices

    Bank Regulatory
    Business Reorganization
    Business Transactions
    Employment & Employee Benefits
    Environmental
    Finance
    Individual Client Services
    Intellectual Property, Sourcing & Technology
    Investment Management
    Litigation
    Real Estate
    Regulatory & Compliance
    Structured Products & Derivatives
    Tax

Major Office Locations

  • New York, NY (HQ)
  • Washington, DC
  • London

Career Update Newsletter

Tips and tools to help you manage your ideal career.