Private Equity - Law and Practice (LAWS90313)

Private equity is an investment class through which investors aggregate investment funds to be invested and managed by a private equity sponsor.  Private equity sponsors apply funds in the takeover of private and publicly listed companies.  Since private equity funds have finite lifetimes, the business plan of private equity necessarily involves the sale of acquired companies over time with a view to generating profits (the “exit”). 

The area of law surrounding private equity investment is changing rapidly, and understanding the theory and regulation of those changes is vital for practitioners and those interested in the law in this field. 

In our subject we undertake a comprehensive examination of US and UK private equity as a discipline and a concept, embracing a variety of disciplines, including black-letter law, economic theory, mergers and acquisitions (“M&A”), regulation, corporate governance, and comparative study of the law in the UK and US jurisdictions.     

This subject is taught at an advanced level.  A basic understanding of companies and their structures, the difference between shares and debt, the roles of shareholders and directors, and the difference between private and publicly-traded companies is recommended. 

Intended learning outcomes

A student who has successfully completed this subject should be able to: 

• Examine the private equity industry including fund formation, corporate acquisitions, and private equity exits;
• Analyse the theoretical framework around private equity and apply this theory to practical scenarios;
• Recognise the legal and regulatory rules governing the private equity industry;
• Determine the theoretical and commercial factors impacting the structure of private equity transactions and interpret the behaviour of key players;
• Apply legal principles and theory to a career practising private equity te law;
• Compare, contrast and appraise the differences in private equity law and practice between the UK and the US.

Generic skills

• Application of theory to practice.
• Comparative legal analysis.
• Recognising how law, regulation and governance considerations impact behaviour.
• Drafting commerciality.
• Negotiation considerations.