Unlocking the Potential of Private Equity Funds
Private Equity Funds: Structures, Strategies and Services
Private equity and hedge funds are two different types of funds. Whereas hedge funds are liquid investments, private equity investments are illiquid, which means they require a different type of structure. Datapres Group has extensive experience forming private equity funds with sophisticated structures and investment strategies ranging from real estate, start-up technology, oil and gas, renewable energy, distressed company, to debt financing. Our team works with fund managers to develop the optimal fund structure, taking into account a variety of considerations such as investment objectives, tax considerations, securities laws, and cross-border investment issues.
We provide comprehensive advice to private equity fund managers throughout the entire formation process, from fund documentation to strategic GP ownership stakes. After launch, we continue to provide comprehensive advice to funds on all aspects of their ongoing operations, structuring portfolio investments and acquisitions, and counseling portfolio companies in connection with their ongoing corporate and intellectual property needs.
Our services 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 agreement, private placement memoranda, subscription documents, management company operating agreement, and investment advisory contracts.
- Collaborating with fund manager to formulate investment goals and investment strategy description.
- Advising on the use of finders, third party marketers, and broker-dealers in connection with capital raising, and drafting and negotiating third party marketing and selling agreements as needed.
- Preparing SEC Form D and state “blue sky” filings on an on-going basis.
- Advising on state and federal laws governing investor qualifications and suitability.
- Counseling on marketing regulations, including general solicitation under Rule 506(c) of Regulation D.
- Implementing exit strategies.
- Facilitating introductions to administrators, auditors, brokers, and marketers specializing in illiquid investments.
Datapres has extensive experience in the private equity fund sector and is well-versed in the legal issues that arise. We offer comprehensive advice to fund managers on all aspects of the formation and ongoing operations of their private equity funds.
