November 7, 2013

Analysis: Differences Between Crowdfunding & Private Placement Fees & Strategies

Many thanks to Morgan Lewis’ Sean Donahue for sharing his notes from a recent NYC/DC Bar program on the new Regulation D rules that included speakers from the Corp Fin Staff. I’ve also posted a deck from Professor John Coffee on the new rules about the impact of the new rules on the SEC’s Enforcement Division – and a comparison of Rule 506 and crowdfunding under Section 4(6). Also see this paper from Jason Parsont which spells out those differences in greater detail.

I’ve also posted this interesting deck from David Weild of IssuWorks that includes a comparison of the fees charged by the various crowdfunding platforms – as well as a comparison of the various types of placement fees charged in private placements. David wraps up with his analysis of how fee structures and placement strategies are likely to emerge. And of course, I’ve been posting memos on the SEC’s crowdfunding proposal in our “Crowdfunding” Practice Area.

This Reuters article tracks comments made by Corp Fin Director Keith Higgins about how many private deals are happening now that the restrictions on general solicitation have been changed. Here’s Keith’s written testimony – see footnote 18 for the private deal stats. And here’s a Bloomberg article entitled “A Dating Service for Those Who Love Hedge Funds.”

Transcript: “Dealing with the Board: Presentations, Etiquette & More”

We have posted the transcript for our recent webcast: “Dealing with the Board: Presentations, Etiquette & More.”

Are the Largest US Law Firms Losing Market Share?

Recently, LexisNexis CounselLink published a report that concludes the largest US law firms (those with 750 or more attorneys) are losing market share to smaller rivals, and specifically firms with between 201-500 attorneys. According to the report, there are two underlying drivers for the shift in the market share: the trend that corporate legal departments are increasingly consolidating their legal work with firms other than the largest firms and smaller firms tend to provide the same value at lower cost and are more inclined to experiment with AFAs (alternative fee arrangements). What is your take on this?

– Broc Romanek