Schulte Roth & Zabel Co-Managing Partner Marc Elovitz Interviewed by CNBC

Schulte Roth & Zabel co-managing partner Marc Elovitz appeared on CNBC’s Squawk Box in the segment, “SEC Seeks Rule Change that Could Cause Fund Managers to Take Less Risk.” He spoke with reporter Leslie Picker 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 commented on how the ability of fund managers to take risks and be protected in their day-to-day conduct is fundamental to having an investment strategy that has potentially higher rewards.  

“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.”   

Watch the interview here.