Lowell Milken Institute for Business Law and Policy Explores Diverging Points of View on Activist Funds
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In March, the Lowell Milken Institute for Business Law and Policy issued the “2015 Private Fund Report: The Role of Activist Funds” and held the second annual Private Funds Conference. This year’s conference focused on the current role of activist funds, which have taken the lead in challenging corporate management to deliver value to company shareholders. Activist funds are now a separate asset class and an ever-present feature of the corporate and investment landscapes. Activists’ strategies have ranged from private negotiations to litigation and epic proxy battles, including replacing an entire board of directors with a slate supported by the activist fund. Many well-known companies have been the target of shareholder activism. The 2015 conference attracted more than 80 people, including fund managers, investors, financial advisors, lawyers, academics, students and members of the public. It featured leading participants in the world of activist funds, including keynote speaker Anne Sheehan, director of corporate governance, CalSTRS; speaker Marshall S. Sprung, SEC Asset Management Unit; and panelists Stephen Bainbridge, UCLA School of Law; Patrick Foulis, The Economist; James R. Gregory, Tenet Partners; Alper Ince, Pacific Alternative Asset Management Company; David C. Karp, Wachtell, Lipton, Rosen & Katz LLP; Christopher Kiper, Legion Partners; Darren Novak, Houlihan Lokey; Alison Ressler, Sullivan & Cromwell; Timothy Spangler, Lowell Milken Institute and Sidley Austin LLP; Peter Stein, Angeles Investment Advisors; Glenn W. Welling, Engaged Capital; and Steve Wolosky, Olshan Frome Wolosky LLP. A highlight of the conference was the keynote presentation by Anne Sheehan. She explained why CalSTRS invests in activist funds and its firm belief that those funds will not only generate outstanding returns but also help to align the interests of corporate management with the interests of shareholders. The day started off with an introduction by Marshall Sprung, who discussed the SEC’s priorities for 2015 with respect to private funds generally and activist funds in particular. Each of the conference’s panels presented divergent points of view,
68 UCLA LAW MAGAZINE | FALL 2015
On the panel, Activists and Their Targets, James R. Gregory (Tenet Partners) makes his point to fellow panelists David C. Karp (Wachtell, Lipton), Iman Anabtawi (UCLA School of Law), Darren Novak (Houlihan Lokey) and Steve Wolosky (Olshan Frome Wolosky LLP).
Stephen Bainbridge (UCLA School of Law), Patrick Foulis (The Economist) and moderator, Alison Ressler (Sullivan & Cromwell)