April 26, 2004
Ms. DiMartino quoted in the April 26 edition of The Wall Street Journal on a growing trend whereby many leading private-equity firms are moving to launch public closed-end funds.
Corporate partner Rose DiMartino was quoted in the April 26 edition of The Wall Street Journal on a growing trend whereby many leading private-equity firms are moving to launch public closed-end funds. The article, “Private Equity Goes to Public, Letting Small Investors Play, (pg. C1)” reports that prestigious firms including Kohlberg Kravis Roberts, Blackstone Group, and Evercore Partners announced that they were following the lead of Apollo Investments and registering closed-end investment companies that would operate as business development companies (BDCs)with the SEC for public sale. The Journal notes that the BDCs are being met with skepticism due to the potentially high costs to investors in the public market. Ms. DiMartino, a member of Willkie’s investment-funds practice, predicts to the Journal that “This is something that will be limited only to the marquee names.” She told the paper that she expects a quick retreat in further BDC offerings if existing ones don’t fare well in the secondary market. Rose DiMartino is a partner in Willkie’s New York office where she counsels investment companies and their advisers in all aspects of their organization and operation. An expert on the Investment Company Act of 1940, Ms. DiMartino is familiar with open-end and closed-end funds, both SEC-registered and private, domestic and offshore. She also advises clients on investment adviser registration and regulation, strategic alliances, and wrap fee programs.