Although private equity and hedge funds have much in common, the illiquid nature of private equity investments necessitates certain structural differences between the two types of funds. Hutner Klarish LLP has extensive experience forming private equity funds with sophisticated structures and investment strategies ranging from art acquisition, start-up technology, real estate to debt financing. Working with managers, we help develop optimal fund structures and documentation that incorporates manager friendly compensation and operational terms.
After launch, we also counsel funds on all aspects of their ongoing operations, including structuring and monitoring of portfolio investments, acquisitions, dispositions and counseling portfolio companies in connection with their ongoing and varied legal needs.
The services we provide to private equity fund managers include:
- Advising on business entity selection, whether limited partnership, limited liability company, series LLC, or other form.
- Counseling on fund structure, strategy descriptions and parameters, compensation provisions, liquidity provisions, hurdle rates and valuation procedures, and a variety of other fund terms.
- Advising on the optimal tax structure of the fund, in consultation with tax counsel if needed.
- Preparing term sheets, limited partnership agreements, private placement memoranda, subscription documents, management company operating agreements, and investment advisory contracts.
- Representing fund clients in connection with investments in portfolio companies.
- Collaborating with fund managers to formulate investment goals and investment strategy description.
- Preparing SEC Form D and state “blue sky” filings on an on-going basis.
- Implementing exit strategies.
- Facilitating introductions to administrators, auditors, brokers, and marketers specializing in illiquid investments