Private Equity Lawyer in NYC, New York – Private Equity Law
The PE Industry in New York
Role of PE Lawyers
Practice Area Definition
Legal Services for PE Offered
Private Equity Deal Process
Hiring a PE Lawyer
Martha M. Dwyer has considerable experience in private equity deals in a range of industries and sizes, representing funds in seeking and making arrangements with investors and in investing in companies and investors, in private equity funds. She has assisted in strategizing, negotiating and drafting all aspects of these transactions, including having drafted the first claw-back of a fund’s promote approximately 30 years ago.
The Booming Private Equity Industry in New York
New York’s vibrant financial sector and talented workforce have made it an attractive location for New York private equity firms to set up shop. As per a report by Preqin, a leading data provider in the private equity industry, the number of private equity firms in New York has increased by 25% since 2012.
Capital raised by these firms has also seen an upswing of 56% since 2012. Such growth can be attributed to various factors, including the availability of capital, favorable valuations, and a strong pipeline of potential investments.
The Role of Private Equity Lawyers
Private equity lawyers are essential in this industry, ensuring that their clients can navigate the complex legal terrain and structure their investments to maximize returns and minimize risk. These lawyers are involved in every stage of the investment process, from initial due diligence to closing deals and ongoing legal guidance.
Practice Area Definition
Private equity law is a highly specialized field that deals with investments made in public and private companies. Private equity law covers all aspects of these investments, from structuring to negotiating and documenting the deals.
The companies that private equity firms invest in usually require capital to grow or make strategic acquisitions. In some cases, private equity firms may also invest in struggling companies that require a turnaround. Private equity firms often collaborate closely with the management of the companies they invest in, providing them with strategic guidance and operational support.
An important area of private equity law is fund formation. Private equity firms usually raise capital from institutional investors such as pension funds, endowments, and sovereign wealth funds, but often from individuals. New York private equity attorneys assist these firms in structuring and creating their investment funds, including preparing the fund documents and negotiating with the investors.
Private equity law also covers the ongoing management and operation of the companies in which private equity firms invest. Private equity lawyers help their clients navigate complicated regulatory matters, employment issues, and corporate governance matters. They may also provide assistance with the restructuring and sale of portfolio companies.
Legal Services for Private Equity Offered
Private equity lawyers provide a comprehensive array of legal services to investors and private equity firms. Some of the most common services include:
Mergers & Acquisitions
Private equity lawyers help clients acquire and invest in companies, whether through outright acquisition or by acquiring a controlling interest. Learn more about our New York M&A lawyer services here.
Private equity lawyers provide legal counsel on financing transactions, such as private placements of debt or equity.
Fund Formation & Management
Private equity lawyers assist clients in forming and managing investment funds, including private equity funds, venture capital funds, and hedge funds.
“She was always very precise on provisions of the many agreements and helped me understand issues and assisted me on prioritizing, worked well with other side, a large company and a large law firm, and quickly gained the respect of both. She was very successful in negotiations and documentation and closing. I honestly can’t imagine how I would have gotten through this without her.”*
The Private Equity Deal Process
The private equity deal process is a complex series of steps that require a thorough understanding of both legal and financial considerations. Some of the key stages in the process include:
The first stages of the deal process typically involve identifying potential targets and sources of funds and conducting initial due diligence.
Due diligence is a crucial stage in the deal process, during which the buyer thoroughly investigates the target company’s financial, legal, and operational history to identify any potential risks or liabilities and makes itself familiar with potential sources of funds to assure that they are qualified and appropriate.
Negotiations and Drafting
Once due diligence is complete, the parties negotiate the terms of the transaction. That includes, in the case of obtaining funds, the relationship among the fund and the investors or lender, incentives for the fund and, in the case of the purchase of or an investment in a company, the purchase price, the structure of the transaction, and the representations and warranties made by the company and management of the company.
Closing and Post-Closing
The final stage of the deal process involves closing the transaction and implementing the agreed-upon terms.
Environmental, Social, and Governance Considerations
Environmental, social, and governance factors are becoming increasingly important in the private equity industry. Investors are looking for companies that prioritize sustainable and socially responsible practices, and private equity firms are integrating these considerations into their investment decisions.
New York private equity lawyers can provide critical legal advice to clients about the implications of these considerations and draft contracts and agreements that reflect them.
Hiring a Private Equity Attorney in NYC
Selecting the right NYC private equity lawyer is crucial to thriving in the industry. An experienced and knowledgeable lawyer can provide invaluable legal guidance and support throughout the investment process
Martha M. Dwyer is proud to be among such attorneys. Having represented all sides (separately) for many years, she delivers over 35 years of knowledge and experience to help strategize the most suitable means of raising funds for her clients.
“She is both creative and meticulous in fulfilling her role. We have continued to employ significant portions of the documents she crafted in six subsequent investment funds, which amount to an additional $2.7 billion of investment commitments.“*
*Prior results do not guarantee a similar outcome