Structuring Private Equity Co-Investments and Club Deals: Risks and Opportunities for Sponsors and Investors

Choosing the Right Investment Structure, Negotiating Key Deal Terms, and Navigating Tax and Regulatory Ramifications

Recording of a 90-minute CLE webinar with Q&A


Conducted on Wednesday, April 15, 2015

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE program will provide counsel to commercial investors and sponsors with a review of legal developments in co-investments for private equity, investment structures, key deal terms, and tax considerations. The panel will provide insights and perspectives into opportunities and risks for both sponsors and investors.

Description

Co-investment and club structures provide opportunities to address both private equity sponsor and LP goals. From the sponsor-perspective, a co-investment or club structure can serve to fill a capital need — whether a growth need, acquisition financing or a rescue need. For smaller sponsors, a co-investment or club structure can create a business opportunity for a sponsor unable to raise sufficient permanent capital.

From an LP or investor standpoint, co-investment opportunities offer the ability to gain additional access to desired investments or opportunities to sit higher in the capital stock of a portfolio company or asset. With interest rates low and investors seeking places to invest capital, co-investments continue to provide an exciting opportunity for transactions.

The terms of co-investment and club arrangements are typically negotiated on a case-by-case basis depending on factors such as the type and identity of the investor, asset type or portfolio company business, the intended use of the capital, and key tax considerations. Key terms include, among others, fees, expenses, anti-dilution, most favored nation, and affiliate transaction provisions.

Importantly, the co-investment opportunity or club deal must be designed to address a variety of essential regulatory and tax considerations that are often overlooked, especially broker-dealer and investment adviser regulation, and the individual circumstances of the investors.

Listen as our authoritative panel of practitioners analyzes opportunities and risks of co-investments and club deals in private equity for both sponsors and investors, how to choose the right investment structure, negotiating key deal terms, and navigating the tax and regulatory ramifications of the deals for the investor and the sponsor.

READ MORE

Outline

  1. Co-investment structures
  2. Deal documents and key deal terms
  3. Current trends in private equity co-investments
  4. Regulatory hurdles: broker, dealer and investment advisor regulation
  5. Tax considerations for sponsors and investors

Benefits

The panel will review these and other key issues:

  • What are current developments that impact co-investments and club deal structures and how have the terms of these arrangements evolved?
  • What deal structures are typically used for co-investments?
  • What regulatory problems most often derail co-investment and club transactions?

Faculty

Johnson, Spencer
C. Spencer Johnson, III

Partner
King & Spalding

Mr. Johnson’s practice includes extensive experience in complex capital formation and joint venture transactions,...  |  Read More

Huttler, Steven
Steven Huttler

Partner
Sadis & Goldberg

Mr. Huttler has extensive experience in corporate, finance, investment fund and securities matters, including the...  |  Read More

Gelinas, Alex
Alex Gelinas

Partner
Sadis & Goldberg

Mr. Gelinas focuses his practice on providing tax advice to investment managers of hedge funds, private equity funds...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

$297

Download

$297