Private Equity Funds: Formation and Operation examines the various fund types, including PIPEs, SPACs, mezzanine funds, and credit opportunity funds, and is designed to provide a comprehensive understanding of how private equity funds work and are regulated.
The book provides guidance on every decision that has to be made in creating a new fund, including:
- Choosing the right organizational options for funds and their sponsors
- Structuring and implementing ownership and compensation arrangements that work best for each fund
- Negotiating terms between fund sponsors and investors, including fund size, the investment program, capital commitments and contributions, distributions, and related documentation
- Hiring and retaining the best fund talent
- Qualifying for the Securities Act’s private placement exemption, the IAA’s exclusion from registration as an investment adviser, and other exemptive relief
Written by expert private equity fund specialists from Schulte Roth & Zabel LLP, Private Equity Funds advises on how to:
- Structure beneficial seed capital transactions with strategic investors
- Accrue the benefit of allowing principals and employees to participate in the income streams as equity owners or profit-sharing participants in a fund sponsor’s management entities
- Avoid potential liability as a result of developing an excessively specific investment program as a fund manager
Supplemented with more than a dozen sample agreements and opinion letters, Private Equity Funds
allows attorneys advising funds to capitalize on opportunities while staying clear of costly trouble.