Where does Allen & Overy’s (A&O’s) notoriously bank-led leveraged finance practice stand? After all, the criticism articulated of the firm’s sponsor-light practice when Kohlberg Kravis Roberts relationship partner Tony Keal quit for Simpson Thacher & Bartlett was damaging back in 2005. Two years down the line, with the negotiating power of private equity borrowers growing seemingly by the week, the question of how A&O’s most influential team has adapted to the market is all the more pertinent.
The firm itself still gives contradictory signals on the matter; although head of leveraged finance Tim Polglase is unambiguous that bank work remains the driving force for the team. Nevertheless, A&O is doing more work for sponsors, even if the firm’s own estimate that 25%-30% of its practice is from private equity clients is questioned by rivals.
