LL4CQE Half Unit
Legal Aspects of Private Equity and Venture Capital
This information is for the 2024/25 session.
Teacher responsible
Prof Sarah Paterson Cheng Kin Ku Building 6.19 and Mr Simon Witney N/A
This module is co-taught by Simon Witney, Visiting Professor in Practice and a practicing lawyer, and Sarah Paterson, Professor of Law. Simon teaches Sessions 1-8 and Sarah teaches Sessions 9 and 10.
Availability
This course is available on the Executive Master of Laws (ELLM). This course is not available as an outside option.
Students should note that private equity is a specialist asset class,and the basics of debt and equity are not covered in LL4CQE. The course is, therefore, recommended for students who are taking other, relevant corporate law and financial law courses, or who have relevant experience.
Course content
This module will equip students with a detailed understanding of the legal structures and issues arising in international private equity and venture capital. It is founded on deep academic analysis of pertinent theoretical and legal issues complemented by insights from relevant practitioners. It has a UK focus but includes relevant aspects of European Union law with comparative global perspectives.
The module will cover:
• Private equity and venture capital fund raising and fund structuring, including the usual terms of private equity funds.
• The European regulatory framework.
• The structure and terms of venture capital investments and buyouts.
• The corporate governance of private equity-backed companies.
• The debt financing arrangements usually encountered on an LBO.
Session 1: Introduction to private equity and venture capital and some basic theory
This Session will introduce the legal structures and commercial dynamics of private equity and venture capital and the theoretical frameworks that will underpin the course.
Session 2: Fund terms
In Session 2 we examine the core economic and non-economic terms of a typical private equity or venture capital fund. We consider the theoretical basis for these terms.
Session 3: Fund structures: the limited partnership
In this Session we look at the limited partnership structure, examine why it is used and its main legal and tax characteristics. We also look at other aspects of the typical private equity fund structure.
Session 4: Private equity fund (and manager) regulation
This Session looks at UK and EU regulatory initiatives, and critically evaluates the provisions