Source: https://legacy.pli.edu/content/Treatise/Private_Equity_Funds_Formation_and_Operation/_/N-4lZ1z13zzt?No=100&ID=297689
Timestamp: 2019-03-22 16:33:09
Document Index: 760613955

Matched Legal Cases: ['§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 2', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 4', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 7', '§ 7', '§ 7', '§ 8', '§ 8', '§ 8', '§ 10', '§ 10', '§ 10', '§ 11', '§ 11', '§ 11', '§ 11', '§ 11', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 12', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 14', '§ 15', '§ 15', '§ 16', '§ 16', '§ 16', '§ 16']

Supplemented with more than a dozen sample agreements and opinion letters, Private Equity Funds allows attorneys advising funds to capitalize on opportunities while staying clear of costly trouble.
§ 1:1.5 : The Nineties: Technology Industry1-9
§ 1:1.6 : The New Millennium: Securitization Market1-11
§ 1:1.7 : The Subprime Mortgage Crisis1-12
§ 1:1.8 : The European Sovereign Debt Crisis1-14
§ 1:2.2 : Typical Investments1-16
[A] : Diversified Portfolio1-16
§ 1:2.3 : Organizational Structure1-18
[A] : Fund Sponsors1-19
[D] : Placement Agents1-22
[B] : Distinguishing Organizational Features1-23
§ 1:3.2 : Venture Capital Funds1-24
[A] : Typical Investments1-24
[B] : Distinguishing Organizational Features1-25
§ 1:3.3 : Mezzanine and Credit Opportunity Funds1-26
[A] : Typical Investments1-26
[A][1] : Mezzanine Funds1-26
§ 1:4.2 : Special Purpose Acquisition Companies (SPACs)1-34
[A] : Investment Advantages1-35
[A] : Foreign Policy Concerns with SWFs1-39
§ 1:4.5 : Secondaries1-40
§ 1:4.8 : Permanent Capital1-43
§ 1:4.9 : Status of Existing and New Deals Post Financial Crisis1-44
[A] : Existing Deals1-44
§ 1:6 : Industry Convergence1-50
§ 1:6.1 : Blurring the Line Between Private Equity and Hedge Funds1-50
[B] : Erosion of Differences Between Private Equity and Hedge Funds1-51
[C] : Advantages of Convergence1-52
[D] : Convergence Concerns1-53
[D][1] : Valuation of Fund Assets and Computation of Compensation1-53
[D][3] : Marketing Issues1-54
[D][4] : Investor Expectations1-54
[A][3] : Co-Investments2-5
§ 2:2.6 : Funds of One2-7
§ 4:1 : Overview4-5
§ 4:1.2 : Fund Investment Strategy4-7
§ 4:1.4 : Single Fund or Cluster of Parallel Funds4-8
§ 4:2.1 : Small Funds4-12
§ 4:2.2 : Excessively Large Funds4-12
§ 4:3.2 : Investment Guidelines and Restrictions4-16
[E] : Admission of Subsequent Investors4-23
[A] : Recall of Capital4-25
§ 4:4.3 : Holding Period4-27
[A] : Incremental Liability Exposure4-29
[B] : Capital Call Notice4-31
[B] : Investor Clawback4-45
§ 4:6 : Closings4-46
§ 4:6.1 : Initial Closing; Offering Period4-46
§ 4:7.2 : Distributions In-Kind4-47
[B] : Tax Advantages of Distributions In-Kind4-48
[D] : Back-End-Loaded Carry4-59
[D][1] : Delay in Receipt of Carry4-60
[D][2] : Advantages to Investor4-60
[E] : Hybrid Carry Arrangements4-62
[G] : General Partner Clawback4-64
[G][1] : Calculation of the Clawback4-65
[G][3] : Who Is Liable for Repayments of the Clawback4-67
[G][4] : What Deductions May Be Taken in Calculating the Clawback4-70
[G][5] : What Security Is Given to Ensure Repayment4-71
§ 4:8.2 : Management Fees4-73
[A] : Overview4-73
[B][2] : Deviation from the Typical Market Structure4-74
[B][3] : Investor Scrutiny of Management Fees4-75
[B][4] : Net Invested Capital4-75
[B][5] : Different Management Fees for Different Investors4-75
[D] : Reduction to Management Fees4-76
[D][1] : Transaction Fees4-76
[D][2] : Waiver of Management Fees Relating to Payment of Placement Agent Fees4-79
§ 4:8.3 : Other Fees4-80
[A] : Break-Up Fees4-81
[B] : Directors Fees4-81
[C] : Advisory, Monitoring, and Similar Fees4-82
[D] : Acquisition/Disposition Fees4-83
[E] : Affiliate Service Fees4-83
§ 4:9 : Expenses4-83
§ 4:9.1 : Overview4-83
[A][1] : Management Fees4-84
[A][2] : Costs in Acquiring, Holding, and Disposition of Investments4-84
[A][3] : Organizational Expenses4-85
[A][4] : Service Provider Costs4-86
[A][5] : Extraordinary Expenses4-86
[A][6] : Partner Meeting Expenses; Reporting4-86
[A][7] : Taxes4-87
§ 4:9.3 : Investment Manager Expenses4-87
[A] : Types of Expenses Incurred by the Investment Manager4-87
§ 4:9.4 : General Partner Expenses4-88
[A] : Types of Expenses Incurred by the General Partner4-88
[B] : Sources of Cash to Cover Expenses4-88
§ 4:10 : Management Company; General Partner4-89
§ 4:10.1 : In General4-89
§ 4:10.2 : Duties and Powers of the General Partner4-89
§ 4:10.3 : Duties and Powers of the Management Company4-94
§ 4:10.4 : Restrictions on Fund Managers4-95
[A] : Time Commitment4-95
[B] : Allocation of Investment Opportunities and Aggregation of Trades4-96
[C] : Conflict Transactions4-97
[D] : Duty to Make Investment Opportunities Available to Funds; Deal Exclusivity4-98
[E] : Subsequent Funds4-99
[F] : Other Activities4-99
[G] : Non-Competition4-99
§ 4:11 : Limited Partners4-100
§ 4:11.1 : Limited Liability4-100
§ 4:11.2 : No Participation in Management4-101
§ 4:11.3 : Additional Limited Partners; Increased Commitments4-104
§ 4:12 : Advisory Committee4-105
§ 4:13 : Exculpation and Indemnification4-107
§ 4:13.1 : Exculpation4-107
[A] : Misconduct4-107
[B] : Delaware Law4-107
[C] : Standard of Liability4-108
§ 4:13.2 : Indemnification4-108
§ 4:14 : Withdrawal of Interests4-110
§ 4:14.1 : Mandatory Withdrawals4-110
§ 4:14.2 : Optional Withdrawals4-110
§ 4:14.3 : Rights Upon Withdrawal4-111
§ 4:15 : Key Person Events4-111
§ 4:15.1 : Nature of Key Person Events4-111
§ 4:15.2 : Remedies Following Key Person Events4-112
[A] : Termination of Investment Period4-112
[B] : Dissolution of Fund4-113
[C] : Replacement of General Partner and Manager4-113
[D] : Required Vote and Treatment of Carry4-113
§ 4:16 : Transferability of Interests4-114
§ 4:16.1 : General Restrictions on Transfers4-114
§ 4:16.2 : Typical Restrictions on Transferability4-114
[A] : General Partner Consent4-114
[B] : Transfers Between Unrelated Parties4-115
[C] : General Partner’s Discretion4-116
§ 4:16.3 : Permitted Transfers4-117
§ 4:16.4 : Rights of First Refusal4-117
§ 4:16.5 : Pledges of Interests4-118
§ 4:16.6 : Locating Buyers4-119
§ 4:16.7 : Legal and Tax Issues4-119
§ 4:17 : Valuation of Fund Assets4-120
§ 4:17.1 : In General4-120
§ 4:17.2 : Economic Features of Private Equity Funds Affected by Valuation of Assets4-121
[A] : Distribution Calculations4-121
[B] : Management Fee Calculations4-121
[C] : Distributions In-Kind4-121
§ 4:17.3 : Determination of Values of Investments4-122
§ 4:17.4 : Marketing Based on Valuation4-122
§ 4:18 : Duration4-122
§ 4:18.1 : Term of the Fund4-122
§ 4:18.2 : Early Dissolution4-123
[A] : Overview4-123
[B] : “No Fault” Dissolutions4-124
§ 4:18.3 : Liquidation and Winding Up of the Fund4-126
§ 4:19 : Side Letters4-126
§ 4:19.1 : In General4-126
§ 4:19.2 : Legal and Regulatory Concerns Raised by Side Letters4-128
§ 4:19.3 : Common Types of Side Letter Provisions4-130
[A] : Most Favored Nation Provisions4-130
[B] : Compensation Provisions4-131
[C] : Redemption Provisions4-131
[D] : Transfer Provisions4-132
[E] : Information Rights4-132
[F] : Investment Guidelines4-133
[G] : Requirement That Other Investors Sign Substantially Similar Subscription Documents4-135
[H] : Sovereign Immunity4-135
[I] : Capacity Rights4-135
[J] : Co-Investment Rights4-136
§ 4:20 : Amendments4-136
§ 4:21 : Certificates4-138
§ 4:22 : Closing Process4-138
§ 4:23 : Warehousing of Deals4-139
§ 4:24 : Powers of Attorney4-140
§ 4:25 : Governing Law4-141
§ 4:26 : Submission to Jurisdiction4-142
§ 4:27 : Arbitration/Mediation4-143
§ 6:2 : Background on Management Structures6-5
[B] : Direct Employee Investment in the Fund Sponsor’s Funds6-10
[F] : Employees’ Securities Companies6-13
§ 6:4.3 : Profit Sharing and Ownership in the Management Entities6-15
[B] : Authority of the Managers6-34
[C] : Voting or Consent Rights6-36
[E] : Fiduciary Duties of Managers6-40
[E][1] : Duty of Managers Toward One Another6-40
[H] : Expenses of the Management Entities6-46
§ 6:5.4 : Capital Contribution Provisions6-46
[C] : Capital Contributions6-49
[E] : Clawback Obligation6-51
§ 6:5.5 : Restrictions on Economic Rights: Vesting, Dilution, and Sunset Provisions6-53
[B] : Dilution6-55
[C] : Forfeiture of Economic Rights by Equity Owners6-56
[C][1] : Terms of Departure6-56
[C][2] : Vesting6-58
§ 6:6 : Structuring Ownership and Compensation Arrangements for the Management Company6-59
§ 7:2.4 : Properly Classifying Potential Hires7-4
[A][1] : Confidentiality7-7
[A][2] : Non-Competition Clauses7-8
[A][5] : Non-Solicitation of Personnel7-10
§ 7:3 : Employment Policies and Procedure7-12
§ 7:3.2 : Employee Training7-13
§ 8:3.1 : Terms of the Limited Partnership Agreement8-5
§ 8:3.3 : Negotiating the Terms of the Limited Partnership Agreement8-6
§ 8:4 : Ancillary Documents8-7
[B][1] : Rule 501(a): Accredited Investors10-6
[B][6] : Communications with the Press and the Public10-13
[B][10] : Rule 502(d): Limitations on Resale10-17
[B][12] : Integration of Multiple Private Offerings10-18
[C][1] : Rule 506(c) “General Solicitation” Provisions10-19
[C][3] : Adoption of Rule 506(c) by Private Equity Managers10-21
[C][5] : Proposed Changes to Regulation D and Form D10-23
[D][1] : Coverage of the “Bad Actor” Rule10-24
[D][2] : “Reasonable Care” Exception10-27
§ 10:3 : Raising Capital Outside of the United States10-28
§ 10:3.1 : Regulation S10-28
§ 10:4 : Consequences of a Failure to Comply with Private Placement Exemptions10-31
[A][2] : Representations Required from Investors11-7
[A] : Investments11-12
§ 11:5 : Involuntary Transfers11-17
§ 11:6.2 : BDC Structure11-19
§ 11:6.3 : Advantages of a BDC11-20
§ 11:6.4 : Taxation of BDCs11-21
§ 11:7 : Consequences of Failure to Comply with Investment Company Act Exclusions or Exemptions11-21
§ 12:2.4 : Consequences of Investment Advisers Act Registration12-11
[A] : Required Policies and Procedures12-11
[C] : Performance-Based Compensation12-15
[E] : Section 208 of the Advisers Act12-19
[F] : Form PF12-19
§ 12:3 : Exemptions from Investment Advisers Act Registration12-22
[A] : Determination of Regulatory AUM in the United States12-24
[B] : Frequency of Calculation of Private Fund Assets12-26
§ 12:3.2 : Exemption for Advisers to Venture Capital Funds12-26
[A] : “Grandfather” Provision12-29
[B] : Application to Non-U.S. Advisers12-29
§ 12:3.3 : Exemption for Foreign Private Advisers12-30
[A] : Counting Clients12-30
[D] : Meaning of “Place of Business”12-33
§ 12:4 : Exempt Reporting Advisers12-34
§ 12:4.1 : Reporting Requirements12-34
§ 12:5 : Substantive Provisions of the Advisers Act12-35
§ 12:5.1 : Section 206: Anti-Fraud Provisions12-35
[A] : Generally12-35
[B] : Potential Conflicts of Interest12-40
§ 12:5.2 : Code of Ethics12-42
[A] : Rule 204A-112-42
[B] : Personal Trading12-44
[C] : Gifts and Entertainment12-46
[D] : Outside Business Activities12-46
§ 12:5.3 : Insider Trading12-47
[A] : General Overview12-47
[B] : Adopting Insider Trading Policies12-50
§ 12:5.4 : Principal Transactions12-51
[A] : Cross Trading12-53
§ 12:5.5 : Advertising Practices12-53
[A] : Testimonials12-55
[B] : Past Specific Recommendations12-56
§ 12:5.6 : Performance Advertising12-58
[A] : Clover Capital No-Action Letter12-58
[B] : Model Performance12-59
[C] : Performance “Net of Fees” Requirement12-61
[D] : Performance Advertising Record-Keeping Requirement12-62
[E] : Performance Presentation Considerations for Private Equity Firms12-63
[F] : FINRA Rules Concerning Performance Advertising12-64
[F][1] : Related Performance12-65
[F][2] : Target Returns12-66
[F][3] : Projected Returns12-66
[F][4] : Hypothetical and Back-tested Performance12-67
[F][5] : Risk Factors12-67
[F][6] : 2017 Marketing and Advertising Guidance12-68
[G] : Track Record Portability12-69
[G][1] : Employee Track Record Portability12-69
[G][2] : Adviser Track Record Portability12-70
§ 12:5.7 : Proxy Voting Procedures12-71
§ 12:5.8 : Custody Rule12-72
§ 12:5.9 : Fees and Expenses12-74
§ 12:5.10 : Broker-Dealer Registration12-76
§ 12:5.11 : Adviser Compliance Policies and Procedures12-77
§ 12:5.12 : Business Continuity Planning12-78
§ 12:5.13 : Cybersecurity12-79
§ 12:6 : Offshore Advisers12-80
[C] : Third-Party Marketers As Broker-Dealers13-8
[C][1] : Securities Act and Investment Company Act Registration Exemptions13-9
§ 13:2 : Pay-to-Play Restrictions13-10
§ 13:3 : Section 13(d) and Section 13(g) Filings13-13
§ 13:3.1 : Schedule 13D13-14
§ 13:3.3 : Section 13(d) Groups13-16
§ 13:4.1 : Section 16(a) Reporting13-18
§ 13:4.2 : Section 16(b) Short-Swing Trades Liability13-21
§ 13:5 : Rule 13(h)13-22
§ 13:5.1 : Overview13-22
§ 13:5.6 : Recordkeeping, Reporting, and Monitoring by Broker-Dealers13-27
§ 13:5.7 : Unidentified Large Traders13-27
§ 13:5.9 : Confidentiality13-28
§ 13:6 : Section 13(f)13-28
§ 13:7 : The Hart-Scott-Rodino Act13-30
§ 13:7.1 : Overview13-30
§ 13:7.2 : Exemptions13-31
[A] : Transactions Solely for Investment Purposes13-31
[C] : Certain Acquisitions of Voting Securities by Institutional Investors13-33
[D] : Acquisitions of Voting Securities of Foreign Issuers13-33
§ 13:7.3 : Aggregation of Funds Under Common Control13-33
§ 13:8 : Resales of Privately Placed Securities13-34
§ 13:8.1 : Overview13-34
§ 13:8.2 : Exemptions from Registration13-35
[A] : Section 4(a)(1) Exemption13-35
[B] : Rule 14413-36
[C] : Rule 144A13-37
[D] : Section 4(a)(1-1/2) Exemption13-38
§ 13:9 : Allocation of New Issues13-39
§ 13:9.1 : FINRA Rule 513013-39
[A] : Overview13-39
[B] : Exemptions13-40
[B] : Spinning Prohibition13-41
[C] : Exceptions13-42
§ 13:9.3 : Applicability to Private Equity Firms and Funds13-42
§ 13:9.4 : New Issue Certifications13-43
§ 13:9.5 : Allocating Profits and Losses13-43
§ 13:10 : Rule 105 Under Regulation M13-44
§ 13:11 : Short Sale Regulation13-45
§ 13:11.1 : U.S. Regulation13-45
[A] : Regulation SHO13-45
[B] : Dodd-Frank Act13-46
§ 13:11.2 : International Regulation of Short Sales13-46
§ 13:12 : Ownership Levels in Highly Sensitive Industries13-47
[A] : Exemptions for CPOs and CTAs13-50
[A][1] : Exemptions for CPOs13-51
[A][2] : Exemptions for CTAs13-52
[B] : Registered CPOs-CFTC Rule 4.713-53
§ 13:14 : Privacy Regulation13-54
§ 13:14.1 : Overview13-54
[B] : Safeguards Rule13-60
§ 13:14.3 : Regulation S-P13-61
[A] : Practical Guidance13-62
§ 13:14.4 : Other Privacy Regulations13-62
§ 13:14.5 : Identity Theft Prevention Program13-65
§ 13:15 : Foreign Corrupt Practices Act13-69
§ 13:16 : Bank Regulations13-74
§ 13:16.1 : Volcker Rule13-74
§ 13:16.2 : Developments Regarding Private Equity Investments in U.S. Banks13-78
§ 13:17 : Derivatives Regulation13-80
§ 13:18 : Alternative Investment Fund Managers Directive13-81
§ 14:2 : Exemptions14-4
§ 14:2.1 : Limitation on Ownership by Benefit Plan Investors: The 25% Test14-4
[A] : Twenty-Five Percent Ownership Limit14-4
[B] : Calculation of the 25% Test14-5
[C] : Fund of Funds Investing in Private Funds14-5
§ 14:2.2 : Operating Companies14-6
[A] : Venture Capital Operating Companies14-7
[B] : Real Estate Operating Companies14-11
[C] : VCOC Status During a “Distribution Period”14-12
[D] : Practical Considerations14-13
[D][1] : Opinions and Certificates14-13
[D][2] : Fund Manager Representations14-13
[D][3] : Tracking Ownership by Benefit Plan Investors14-14
[D][4] : Valuation Difficulties14-14
[D][5] : Other Disclosures and Representations14-15
[D][6] : Special Considerations for Private Equity Funds of Funds14-15
[E] : Other Plan Asset Exemptions14-16
§ 14:3 : ERISA Requirements—Plan Asset Funds14-16
§ 14:3.1 : Plans Covered by ERISA and the Plan Asset Regulation14-16
§ 14:3.2 : Section 404—Fiduciary Duties14-17
[A] : Interpretational Issues14-18
§ 14:3.3 : Section 406(a): Prohibited Transactions with Parties-in-Interest14-19
§ 14:3.4 : Section 406(b): Prohibited Transactions Involving Self-Dealing14-20
§ 14:3.5 : Qualified Professional Asset Manager Exemption14-21
§ 14:3.6 : ERISA Liability14-23
[A] : “Know Your Investor” Procedures15-8
[B] : High-Risk Investors15-9
[D] : Suspicious Activity Monitoring and Reporting15-11
§ 15:3 : The Money Laundering Control Act of 198615-13
§ 15:4 : Conclusion15-14
§ 16:2.1 : The Benefits of the Seed Deal16-5
§ 16:2.2 : Structural Components of a Seed Deal16-6
[A][3] : Investment in a Satellite Fund16-8
[C] : Management Rights of Seed Investors16-13
[E] : Covenants and Representations in Seed Arrangements16-15
§ 16:2.4 : Parties Subject to Registration and Regulation16-19
§ 16:3.2 : Key Features of Strategic Acquisitions16-20
[C] : Control Issues16-22