Fund Owner Departures + Upper Tier Arrangements
An interview with Desireé Busching & Ira Kustin
The departure of a principal or key figure from a private fund can have profound implications, negatively impacting investor relations, halting the investment period, or triggering automatic redemptions. In this discussion, Desiree Busching, a labor and employment attorney, and Ira Kustin, a private funds lawyer, delve into the complexities surrounding fund owner departures. They explore how well-crafted contracts, particularly those involving management and fund structure (sometimes called the "upper tier arrangements") can ensure stability and that rights and obligations are clearly defined, minimizing the friction that can accompany high-level exits.
Desireé Busching and Ira Kustin are partners at the law firm Akin.
About Desireé Busching & Ira Kustin
“The departure of a key person can trigger a suspension of the fund's investment period, making it potentially existential for a fund.”
Ira Kustin is a private funds partner at the law firm Akin. Ira focuses his practice on representing sponsors and investors in complex hedge, credit and private equity funds. He provides counsel to private fund advisers on international investment platforms, including in Europe, Asia and Latin America. Ira’s clients include market-leading global asset managers, start-ups, and mid-sized and larger managers. He advises investment fund managers faced with complex restructurings, succession planning, crisis/conflict resolution and consent solicitations.
Desireé Busching is a labor and employment partner at the law firm Akin. Desireé concentrates her practice at the intersection of employment and traditional labor law and innovative restructuring and mergers and acquisitions (M&A) transactions. Prior to joining Akin, Desireé served as Assistant General Counsel for the New York City Office of the Mayor, Office of Labor Relations. Her experience includes transfer, hiring and separation of executives and employees, executive and employee agreements, and employee communications and crisis management.
