In-House Counsel & Lender Credibility?

m_1's picture
m_1 - Certified Professional
Rank: Neanderthal | banana points 3,896

I know lenders like seeing brand names on deals to feel safer about providing leverage for a deal but the rates these firms charge relative to what in-house counsel would cost is ridiculous.

Does anyone know how lenders view transactions being handled on the legal end by in-house counsel VS external?

By in-house I mean someone with a real track record and history working at large brand names in M&A, not some random guy that worked at some local law firm with 3 people handling divorce (lol).

Just kills me paying 1 year's salary for one fucking deal and then having to worry about dead deal fees too. Would be nice being able to go after deals more aggressively.

Thoughts? Experience? This is LMM specific for what it's worth so the legal side isn't overly complex anyways as all deals are in the US and around $5M - $15M or so, so something one guy can easily handle.

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Comments (5)

Feb 20, 2019

m_1, way too quiet in here. What about these resources:

I hope those threads give you a bit more insight.

Mar 8, 2019

Bump! Would love feedback.

Mar 8, 2019

edit: misread the post hah

Mar 8, 2019

It's a lot less than a full years salary for each. Also, the Company pays lenders legal fees, so as long as they aren't astronomical, the lender doesn't really care. It's more about CYA than anything else. They also use in-house counsel in conjunction with outside counsel. If in-house were to manage everything, they'd be run over with deal flow at most active shops.

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Mar 8, 2019
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