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Marc Lieberman: Investors Must Halt Erosion of PE Most-Favored-Nation Rights

News | December 6, 2019

Kutak Rock partner Marc Lieberman recently authored an article, “Investors Must Halt Erosion of PE Most-Favored-Nation Rights,” for Law360. The article explains Mr. Lieberman’s proposal of the perfect most-favored-nation (MFN) clauses in limited partnership agreements designed for private equity investment.

MFN clauses “are intended to afford investors with the right to elect the same economic benefits and other rights enjoyed by fellow investors with similar or lesser capital commitments.” According to the article, “Increasingly, the benefits of these clauses are being eroded by general partner-imposed limitation that render the clauses largely ineffective.”

Mr. Lieberman proposes that the perfect MFN is “one that is both reasonable in scope to both investors and investment managers.” Read his proposal here in Law360.

As Chair of the Firm’s Institutional Investments Group, Mr. Lieberman’s practice focuses on the representation of institutional investors in connection with their alternative investments.