Schulte Co-Managing Partner Marc Elovitz Featured in CNBC Delivering Alpha Newsletter 

Schulte Roth & Zabel co-managing partner Marc Elovitz was recently quoted in the CNBC Delivering Alpha Newsletter regarding the proposed SEC rule change lowering the bar for indemnification of fund managers to “ordinary negligence” from “gross negligence.” The change would make it easier for limited partners to bring claims against general partners. 

Marc noted that the rule change "would monumentally change the relationship between fund managers and investors.” Further, he stated that “If you’re going to have funds that offer potentially higher returns, there are going to be risks associated with that. And investment managers are going to have a hard time protecting themselves from being on the hook for those risks.”   

If the rule were to pass in its current form, critics say the reforms would most certainly affect the risk tolerance among private funds, affecting fund managers ability to take risks with their investment strategy. 

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