Vinson & Elkins frequently represents sponsors and managers in the formation and operation of private investment funds – many with complex structures to accommodate domestic and foreign investors with diverse requirements. Our approach is based on three I’s:
Integration — We believe fund formation lawyers should understand what the fund will do once it is formed. Our investment management practice is therefore fully integrated with our transactional and tax practices. Clients raising funds with an investment focus on energy, infrastructure, technology or real estate benefit from our deep institutional knowledge of the unique attributes of transactions in these industries.
We also represent institutional investors in their investments in private funds, which gives us exposure to current market terms and the tax and legal issues faced by these types of investors. Our manager-side and investor-side practices function as an integrated team.
Innovation — While it is a priority for us to know what is considered market, we are not afraid to step outside the box. As legal advisors, we help clients achieve their business objectives or close the gap in negotiations through innovative approaches to fund terms and structures. We have pioneered strategic partnerships for private funds, and we are well versed in bespoke co-investments, seed transactions, single investor funds and separate accounts.
Incentives — At the core of most private equity vehicles are incentive arrangements. Our long involvement with industries that spearheaded pass-through entities – limited partnerships, limited liability companies and REITs – has made us leading practitioners in carried interest and incentive equity structures. Our experience extends beyond traditional investment funds to creative holding company structures in financial services and other industries that rely heavily on incentivizing and retaining professionals.
Private Equity Funds
Vinson & Elkins represents:
- sponsors and investment managers in the formation of private equity funds;
- institutional investors in private equity funds;
- investment teams and managers in their internal compensation, equity and governance arrangements;
- individual investment professionals in their compensation and equity arrangements as they exit or join private equity firms;
- investment teams and investors in connection with co-investments, strategic partnerships, managed accounts, and other non-traditional investment arrangements; and
- private equity funds that reach the end of their term and seek creative exit solutions to optimize the value of their residual portfolio.
Real Estate Funds
Vinson & Elkins represents:
- private equity sponsors and investment managers in private real estate fund structuring, formation and capital raising transactions;
- individual and institutional fund investors; and
- funds in the acquisition, development, construction, management, financing, leasing, and sale of properties of all types, including individual properties and portfolios.
Private Equity Funds Experience
Ridgewood Energy and Ridgewood Infrastructure in the formation of several private equity funds with aggregate capital commitments of approximately $4 billion
White Deer Energy in the formation of several private equity funds with aggregate capital commitments of approximately $2.5 billion
EnCap Investments in fund formation matters
Several public pension and state funds in the State of Texas in multiple investments in and co-investments with private equity and hedge funds
Real Estate Funds Experience
Select Real Estate Fund clients include:
- Alex Brown Realty
- Commonwealth Partners
- Cypress Equities
- Ellington Management Group
- Flagship Healthcare Partners
- Gencap Partners
- Lake Street Homes / Northern Pacific Group
- Renova Capital Partners
- Sandpiper Hospitality
- The Blackstone Group
- The Milestone Group
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