Professor Nili is an expert in corporate law, governance, and business. His new article “Side Letter Governance” is forthcoming in the Washington University Law Review. The article is coauthored with Elisabeth de Fontenay at Duke University School of Law. This newest article focuses on a standard but difficult to study practice in private equity known as “side letters.” The article examines how side letters have evolved and how they are viewed in the industry now and what role they play in dealing with investors. The article also contributes new data and insights to the literature by collecting data on how side letters are currently employed and provides readers with recommendations for improving existing inefficient bargaining equilibriums.
Profs Nili (@ynili) and de Fontenay personally read over 250 side letters and coded them in an Excel sheet and categorized them. The letters span over 30 years and the professors were able to glean new insights from their analysis of the letters.
Listen to the Episode
The interview was conducted on June 27, 2023. | 33:24 minutes; published July 11, 2023. Transcript file (PDF).