Private equity lawyers advise private equity firm clients (i.e. sponsors) on the corporate and financing aspects of their acquisitions (buyouts) of public and private target companies, on the refinancing or restructuring of their portfolio companies, and on the sales of their portfolio companies.
Private equity is a branch of corporate/M&A law, with lawyers working on similar tasks to a conventional M&A transaction, but almost always with the addition of a large financing element used to fund the acquisition. This is typically in the form of leveraged finance (i.e. where the majority of the acquisition is funded through debt). These types of acquisitions are known as leveraged buyouts (LBOs).
Typical tasks include conducting due diligence on the target company, preparing and negotiating the key transaction documents (e.g. share purchase agreement (SPA), investment agreement) and key financing documents (e.g. loan agreements, security agreements and intercreditor agreements), and advising on any competition/antitrust aspects.
Separate specialist funds lawyers will advise on the establishment and structuring of the funds private equity firms use to raise investment from their investor clients and to acquire target companies.
Private equity lawyers at the leading London law firms can expect to earn between £120,000 - £150,000 at the junior end of the associate scale (up to 2/3 years’ PQE).
Mid and senior-level associates can expect to earn north of £200,000.
Private equity is increasingly dominated by US law firms in London where the salaries can be significantly higher. Junior associates at the likes of Kirkland & Ellis and Paul Weiss can expect to earn significantly more than £200,000 a year.
We have a list of salaries paid by all of the UK’s top law firms here.
Private equity is increasingly dominated by US firms which have aggressively expanded their practices in London over recent years.
Kirkland & Ellis and Latham & Watkins are considered to have the best private equity practices, along with Magic Circle names Freshfields, Linklaters and Clifford Chance.
Other US firms like Paul Weiss, Weil, and Simpson Thacher are also regarded as leading private equity shops.
City stalwarts Macfarlanes and Travers Smith have highly-regarded mid-market practices.
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