Kramer Levin Wins M&A Advisor’s U.S. Middle-Market Financing Award for Real Estate Industry Joint Venture

On September 23, 2009, Kramer Levin was named the winner of the fourth annual U.S. Middle-Market Financing Award for Real Estate by M&A Advisor for the formation of Private National Mortgage Acceptance Company, LLC as a joint venture among BlackRock, Inc., Highfields Capital Management, LLC and Stanford L. Kurland.

BlackRock, Inc. and Highfields Capital Management sponsored a new company to acquire and restructure distressed residential mortgage loans in response to the ongoing dislocation in the U.S. mortgage market. The new company, Private National Mortgage Acceptance Company, LLC ("PennyMac"), was formed by affiliates of BlackRock and Highfields, as well as a management team of mortgage industry veterans led by Stanford L. Kurland, PennyMac’s Chairman and Chief Executive Officer. In particular, PennyMac was formed to raise capital from private investors, acquire loans from financial institutions seeking to reduce their mortgage exposures, and seek to create value for both borrowers and investors through distinctive loan servicing. Mr. Kurland was President and Chief Operating Officer of Countrywide Financial Corporation until his departure in October 2006. The PennyMac management team also includes David Spector, Chief Investment Officer, who is former Co-Head of global residential mortgages for Morgan Stanley.

BlackRock is one of the world's largest publicly traded investment management firms, with approximately $1.357 trillion of assets under management as of December 31, 2007. BlackRock manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products.

Highfields Capital Management, founded in 1998, is an investment firm which principally makes long-term investments in public and private companies in the U.S., Canada and in other global markets.

Kramer Levin attorneys on the transaction included: Corporate attorneys Thomas E. Molner, Howard T. Spilko and Joshua E. Davis; Tax attorney Barry Herzog; and Employee Benefits attorney Avram J. Cahn.