Private Equity

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The world of private equity can seem immeasurably complex. In a constantly changing marketplace, our Private Equity lawyers have significant experience in fashioning creative solutions to the problems facing fund sponsors. Baker Botts works with leveraged buyout funds, venture capital funds, real estate funds, sector funds, family offices, funds of funds and hedge funds. We structure funds to accommodate the differing needs of all types of investors, including private pension plans, state and local pension plans, foundations, university endowments, bank holding companies, insurance companies and other taxable and non-taxable institutional investors and individuals.

Corporate: Private Equity Funds

Our work for these funds involves consultation on and consideration of federal and local income tax issues in structuring the funds and their investments, federal and state securities laws applicable to the funds’ efforts to raise equity investments and the activities of the funds and their managers, issues related to compensating fund managers, structuring the entities for various foreign and domestic investments by the funds, and the numerous other general legal concerns that arise in any operating business. We also consult on matters regarding the current trend toward increased public disclosure by funds that include government investors. Additionally, we are familiar with existing and developing market terms for private equity funds, enabling us to provide advice from the earliest stage of concept development through the maturity and launch of a new fund.

Both our U.S. and international lawyers in the Corporate, Finance, Tax and ERISA practices advise sponsors on fund formation and management and on the solicitation of prospective investors and investment execution. These teams have significant fund and other private equity experience as well as a wealth of experience in related practice areas, including mergers and acquisitions, securities, project development, finance and real estate. This combination of experience gives us the ability to fashion creative solutions to the problems facing fund sponsors in constantly changing markets.

Tax: Private Equity Funds

Baker Botts tax lawyers are experienced with the tax issues incident to the formation and operation of private equity funds, hedge funds and real estate funds. We suggest innovative structures for investment in such funds by various types of investors, including foreign sovereigns, other foreign investors, pension plans and other tax exempt entities. We also advise on issues related to recapitalizations and buy-outs of interests in such funds and have extensive experience in formulating incentive based compensation structures for the managers of such funds. We advise clients on issues from both a domestic and an international tax perspective and have served as tax counsel to several funds created in Europe and Russia.