Fund Formation

Stevens & Lee helps clients consider the merits of a variety of fund structures, including limited partnerships, limited liability companies, corporations, offshore vehicles and SBICs. We are experienced in developing innovative structures that give clients the flexibility to access assets that might otherwise have been unavailable to them.

We have assisted many well-known private equity sponsors in forming funds, including those associated with larger financial services companies and independent boutique firms. We routinely assist our clients in structuring their internal arrangements and employee investment arrangements and have substantial experience in negotiating strategic investments in private investment firms and second on transfers of private fund investments.

We prepare limited partnership and LLC agreements and assist in the preparation of private placement memoranda. We understand fund economics, fund accounting and the distribution waterfall and are familiar with terms and conditions required by limited partner investors. We also understand the tax and ERISA implications of both fund structure and domicile in connection with attracting off-shore LPs and optimizing economics, including sponsor-carried interest. In addition, we review fund structure and fund raising from a regulatory and blue sky perspective.

We assist institutional and corporate investors in the review of their proposed investments in private equity funds, then negotiate investment terms and appropriately document the transactions.

Our lawyers have many years of experience in domestic and international private equity fund formation techniques and vehicles, and regularly advise clients on the benefits and risks associated with each jurisdiction and structure.