The Role of Private Equity Lawyers

May 19

Do you want to know what private equity lawyers do? If yes, read on.

To comprehend what private equity lawyers do, you require taking a step back and know about a private equity firm, i.e. the client of a private equity lawyer. Typically, private equity companies operate funds that include the investment of pension funds and investments by people who are prepared to part with their millions for a number of years.

Workings of Private Equity Firms

The private equity companies use this cash, along with other significant money which it borrows from financial institutions for buying assets and companies. They plan the investment in assets or companies for selling them after a few years ascertaining significant profit. The private equity firms hire brainy people and use their prominent industrial contacts for magically transforming the bought companies into entities way more value than its original state. The private equity firms repeat this formula for several times and after a decade or more return back the money to the investors with a good interest. They make significant amount of money for themselves as well. So, it is a win-win situation for all.

Responsibility of Private Equity Lawyers

Private Equity lawyers or international law firms in India that provide private equity services typically have two functions, namely:

  • Acting for the private equity firms during buying and selling of its investments.
  • Forming the funds (basically structured as limited partnerships) and helping the private equity firms effectively negotiate the terms that defines the ways of contribution of cash by the investors.

Private Equity companies come in an extremely demanding category of clients. The fact is that they themselves work hard. Additionally, they are extra smart and are well versed with the ways of keeping the legal expenses down via reducing the time for any project which they assign to their lawyers or law firm.

Some of the PE firms have restricted industry focus and invest in some particular industry or companies. But some of the PE companies are ready to invest in anything and everything that can bring them whopping money. These types of PE companies plan to hire competent law firms instead of one or two lawyers. They know that their lawyers are going to encounter extremely diverse spectrum of transactions.

So, they search for top international law firms in India that can provide them effective services and viable representation in all their transactions. They do not wish to face any hindrance in their transactions and wish for lawyers who are skilled and proficient enough to provide sound legal advice and services in even the most complex situations. With the easy availability of internet, they often discover the right legal firms they have been searching for!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.