Whether a group of individuals is pooling capital to make investments in a specific asset or a private equity firm is establishing a new fund for making investments in an asset class, they must form a fund to provide the necessary legal structure to raise capital, make investments, manage the fund and distribute gains. An array of challenges — from complex regulations to the treatment of varying classes of investors, investment types and payout structures — must be properly addressed at the outset.
Saul Ewing Arnstein & Lehr attorneys represent investors, investment firms and real estate developers in forming private, non-registered funds and investment partnerships. Our team provides a variety of services for both closed-end and open-end funds, including:
- Establishing limited liability companies (LLC) and investment partnerships to form funds and fund managers
- Developing partnership agreements for fund managers and limited partners
- Structuring special purpose vehicles (SPVs) and special purpose acquisition companies (SPACs)
- Structuring funds with varying classes of investors and preferred waterfall returns
- Advising funds with multiple types of investment, including cash, intellectual property and sweat equity
- Forming a variety of alternative investment funds, such as mortgage-backed securities funds, EB-5 financing funds, cannabis investment funds, real estate investment trusts, and Qualified Opportunity Zone Funds, and handling the particular tax and other regulatory requirements for each fund type
- Advising funds that invest in other investment partnerships, funds or joint ventures
- Routinely advising individuals and entities investing in private funds about the issues, obligations, documents and negotiations related to such investments
Our Fund Formation team regularly collaborates with attorneys in complementary practices—such as Tax, Mergers and Acquisitions, Securities Transactions and Regulation, Real Estate, Global Immigration and Foreign Investment, and Cannabis Law—when related matters arise to provide our clients with efficient and streamlined support.
The group includes attorneys who have received the following recognition: