The practice of designation is a well-established system in the private equity world, with lawyers who advise private equity sponsors also helping decide which lawyers the banks appoint on transactions.
Despite drawing the attention of regulators and being described as “odd” and “controversial” by market commentators, the model is routinely used by the likes of Kirkland & Ellis; Paul, Weiss, Rifkind, Wharton & Garrison; Weil, Gotshal & Manges; Latham & Watkins; and Simpson Thacher & Bartlett.
