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United States Private Equity Legal Questions answered by Lawyers

Browse our 1 legal question about Private Equity in United States and read the lawyer answers, or ask your own questions for free.

As a private equity investor, what governance, information, and side-letter rights should I negotiate to protect my investment?
Corporate & Commercial Private Equity
I'm considering committing to a private equity fund and want to understand what rights I should seek beyond capital. What information access, governance influence, and side-letter protections are standard, and what red flags indicate unfavorable terms? Are there typical remedies if those rights are not honored?
Lawyer answer by Hydrick Law Group, PLLC

Your rights (and negotiating power) can vary quite a bit depending on how large your capital contribution is relative to the fund size. For example, $8M of a $10M fund will command much more power than $200k of a $10M...

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United States Private Equity Legal Articles

Browse our 3 legal articles about Private Equity in United States with practical legal information.

PE Exits: Appraisal vs Fiduciary Claims in United States
Private Equity
Statutory appraisal under 8 Del. C. § 262 values target company shares on a standalone basis without deal synergies, while plenary fiduciary breach claims allow broader equitable remedies, including rescissory damages and disgorgement of profits. Statutory appraisal proceedings typically cost between $150,000 and $500,000, whereas plenary fiduciary litigation routinely exceeds... Read more →
CFIUS Safe Harbor vs Post-Closing Review in United States
Private Equity
Securing clearance from the Committee on Foreign Investment in the United States (CFIUS) grants statutory safe harbor under Section 721 of the Defense Production Act, permanently barring the President from unwinding the deal. Closing a foreign acquisition without filing leaves the transaction permanently exposed to the CFIUS Non-Notified Team, which... Read more →
Cross-Border PE Secondary Transactions: US Regulatory Guide
Private Equity
Non-US private equity sponsors buying secondary interests in US funds face overlapping requirements from the Securities and Exchange Commission (SEC), the Committee on Foreign Investment in the United States (CFIUS), and the Internal Revenue Service (IRS). Section 1446(f) of the Internal Revenue Code imposes a mandatory 10% gross withholding tax... Read more →

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