Private Equity

Fund Formation

We form private equity funds, including leveraged buyout funds, venture capital funds, stock market funds, and hedge funds. Our attorneys regularly provide the following services related to fund formation:

• Prepare offering and operating documents
• Advise sponsors on terms, including:
  • Amount and timing of capital contributions
  • Penalties for failure to contribute committed capital
  • Preferred returns
  • Carried interests and management fees
  • Escrows, clawbacks and similar arrangements
  • Investment limitations (including those for tax-exempt and non-U.S. investors)
  • Transfer restrictions and procedures
• Counsel sponsors on tax, securities (including Investment Company Act and Investment Advisers Act) and other legal requirements and issues
• Assist sponsors in structuring GP/manager internal arrangements
• Handle federal and state securities law filings.

Once funds are formed, we represent them in their general affairs and in effecting their portfolio company transactions.

Transactions

Some recent fund formations and transactions include:

• Hastings Equity Partners, a Boston-based private equity firm, in the structuring and negotiation in various transactions involving the acquisition of manufacturing and business services firms
• Comdisco Ventures, an investment portfolio for Lexington, MA-based venture investment firm Windspeed Ventures
• Metapoint Partners Fund-III, L.P., $31,800,000 in committed capital through the sale of limited partnership interests to private investors.

To learn more about our private equity services, please contact Shannon Zollo or Chip Wry.