Private Funds

A leading global private funds practice

Dechert advises private fund sponsors on all aspects of the fundraising lifecycle. Our lawyers have extensive experience of raising funds in all major fund domiciles and all private asset classes, including:

Fund formation, including global advice on investor preferences, tax efficiency, regulatory compliance and market terms
Managed accounts, co-investments and other investment programmes
Secondaries, liquidity solutions and fund restructurings
Global regulatory advice
Tax efficient investment structuring
Seeding/cornerstone arrangements and joint ventures
Private fund manager M&A
Carried interest, management equity arrangements and other incentive structuring

Dechert is the only law firm whose private fund formation team spans the key funds jurisdictions of London, Dublin, Luxembourg, Munich, Paris, Dubai, Hong Kong and Singapore, as well as across the U.S. Our lawyers function as a single global group, collaborating across offices to advise clients on all legal, tax and regulatory aspects of a fundraise. Most senior members of our team have spent time in-house with private fund managers, bringing a deep understanding of the commercial environment in which private fundraising takes place. In addition, our presence on the ground in the key investor jurisdictions means we are ideally placed to advise on investor preferences and requirements.

Dechert’s fund formation clients benefit from our knowledge of the current state of fund terms, market trends and structural innovations. We are closely involved in the private funds industry in the jurisdictions in which we practice, working with trade bodies and other industry groups to defend regulatory challenges and shape the future of the industry.

To support our private funds clients, we have created “World Compass” – an internet-based resource with global legal and regulatory marketing and compliance information – together with our “World Passport” service, which offers AIF fund registration globally.

A broad private funds practice

Our clients range from first-time fund managers to many of the largest money managers in the world.

We raise private funds across all major asset classes and strategies, including:

Buyout
Growth capital
Secondaries and fund of funds
Venture
Mezzanine
Distressed debt and credit opportunities
Direct lending
Trade finance
Real estate
Infrastructure
Equities
Commodities
Currency and cryptocurrency
Emerging markets

A leading global private funds practice

Fund formation, including global advice on investor preferences, tax efficiency, regulatory compliance and market terms
Managed accounts, co-investments and other investment programmes
Secondaries, liquidity solutions and fund restructurings
Global regulatory advice
Tax efficient investment structuring
Seeding/cornerstone arrangements and joint ventures
Private fund manager M&A
Carried interest, management equity arrangements and other incentive ...Continue Reading

Crescent Capital Group LP on the successful close of its third direct lending fund, Crescent Direct Lending Fund III (CDL Fund III), raising US6 billion in investable capital including targeted leverage and separately managed accounts investing alongside the fund.

StepStone Group, a leading global private markets firm on the establishment of two major private debt fund launches – Senior Corporate Lending Fund II and StepStone Credit Opportunities Fund I.

Blixt Partners LLP on the final closing of Blixt Fund I LP.

One of the world’s top 10 global real estate investment managers on the formation of a private equity style closed-end, commingled private investment fund targeting real estate assets in a “green” strategy.

A U.S.-based independent registered investment advisory and portfolio management firm in the formation of a fund targeting US$1 billion which was marked by complicated seed negotiations and a unique investment focus.

A global investment management firm which we are representing on three fronts: acting as lead fund formation and regulatory counsel to establish an international private debt fund valued at US$750 million, which is raising capital and investing worldwide; acting as fund counsel to a new global private equity fund valued at US$2 billion, which focuses on equity investments in alternative assets; and setting up an institutional unlisted business development company (BDC).

A credit-focused investment company in its sponsorship of a US$2 billion direct lending fund, both levered and unlevered.

A major insurer’s registered investment advisor on its open-end U.S. syndicated bank loan fund, valued at US$500 million, for institutional investors in the U.S. and abroad.

Dechert is recognized internationally as a leading adviser to the hedge fund industry. Many of the world’s largest hedge fund and emerging fund managers turn to us for comprehensive, cross-border service. We advise many managers who wish to develop their strategies within more retail-based vehicles, including alternative mutual funds, exchange-traded funds and UCITS. Dechert also advises clients on the emerging trend of alternatives managers developing registered closed-end funds and open-end mutual funds and business development companies (BDCs).

We keep pace with changes in the marketplace, such as hedge fund managers launching more private-equity-type structures and private equity managers exploring the more liquid hedge fund space. This has fueled growth in “hybrid” or “crossover” structures that share hedge and private equity type characteristics, such as a fixed term, commitment structures and in some cases the use of carry vehicles. We are well placed to provide support in this area, drawing on our depth in both the hedge fund and private equity spaces.

Ranked as a leading firm for hedge funds – Chambers Global (2023).
Consistently ranked in tier 2 for Investment Funds: Hedge Funds – Chambers UK (2023).
Tier 1 for hedge funds in Asia-Pacific region – Chambers Asia Pacific (2023).
Ranked as a leading firm for alternative/hedge funds – The Legal 500 (US) (2023).
Named ‘Best law firm – alternative credit’ at the With Intelligence HFM European Services Awards (2023).
Named ‘Best law firm – client service’ at the With Intelligence HFM European Services Awards (2022).

Our global team of private equity fund formation lawyers advise clients at every phase of the investment lifecycle, working closely with the firm’s corporate and securities, global finance, real estate and tax groups, to provide fund formation advice as part of a holistic offering.

Our lawyers have represented institutional asset managers and investors, including private equity and credit and fund sponsors, in a wide variety of fund formation matters across the asset class, including buyout, mezzanine, distressed debt, high yield, credit opportunities and direct lending, as well as investment and leverage financing activities by those funds.

We have helped private equity firms in registering with regulators in most leading jurisdictions, dealing with inspections and assisting with enforcement actions. We have advised on the disclosure and business practices of private equity firms in light of the various recent enforcement cases. We have also been advising private equity firms regarding the potential need for broker-dealer registration.

Recognized as a leading firm in private equity funds – The Legal 500 US (2023).
Recognized as a leading firm in private funds in the UK – The Legal 500 UK (2023).
Ranked as a leading firm in ‘investment funds: private equity’ – Chambers Asia-Pacific (2023).
Ranked as a leading firm for private equity funds – IFLR 1000 (2022).
Pan-European legal adviser of the Year – Real Deals Private Equity Awards (2021).

Credit funds of all types are a very significant part of Dechert’s practice, encompassing liquid credit, hybrid fund and less liquid private-equity-style credit strategies, including direct lending, mezzanine, distressed and credit opportunities funds.

Virtually all of the mandates we work on have a cross-border element and we have established credit funds in most leading jurisdictions under a wide variety of regulatory regimes. We work closely with our finance colleagues in relation to the funds’ downstream investment structuring and financing facilities.

We act in some capacity for over 42 of the PDI top 50, the world’s top private debt fund managers.

Recognized as a top-ranked law firm globally in Private Debt Investor’s Hall of Fame since inception.
Named ‘Best law firm – alternative credit’ at the With Intelligence HFM European Services Awards (2023).
“Leading Law firm in private debt fund formation” – Preqin’s Global Private Debt Report (2016-to date).
Shortlisted for ‘Asia-Pacific Law Firm of the Year’ in the Private Debt Investor Awards (2022).
Shortlisted for ‘European Law Firm of the Year’ in the Private Debt Investor Awards (2022).

Dechert lawyers across the globe have acted on various transactions in the secondaries space, including GP-led secondaries, transfers of portfolios of fund interests, transfers of portfolios of direct investments, “stapled” secondaries, fund restructurings, fund recapitalizations, management team/portfolio spin-outs, and strategic reorganizations of management companies. Having acted on both the buy side and the sell side, as well as for general partners, we have considerable insight into market terms, appropriate deal structures, and the distinct “key issues” for many of the largest secondaries participants globally. Our secondaries practice brings together fund formation lawyers and transactional lawyers, which more accurately reflects the funds and M&A cross-nature of complex secondary deals in today’s market and which better serves our clients.

Advising Ping An on the closure of the world’s largest private credit secondaries transaction.
Recognized as a leader in the secondaries market in Secondaries Investor’s Annual Overview, 2023.
Shortlisted for ‘Secondaries Law Firm of the Year in Asia’, PEI Awards 2020.
Commended for our role advising private equity firms Committed Advisors and NewQuest Capital Partners in a complex restructuring and secondaries acquisition involving a portfolio of IT services businesses held by tech investor Basil Partners – Financial Times – Asia Pacific Innovative Lawyers Awards (2019).

Our lawyers have established a variety of structures to pool the assets of sovereign wealth funds, public pension plans and other institutional investors from around the world. We regularly counsel investors in relation to their investments in a broad variety of funds.

We also serve as counsel to several major college endowments, foundations, sovereigns, insurance companies, fund of funds and family offices with respect to their alternatives program.

Dechert lawyers extensive counseling capabilities with respect to the complex tax and employee benefits issues confronted by investment managers in all aspects of their fund structuring and transactional operations.