Madgett LawMinneapolis · Minnesota

Private Equity

Trusted general counsel for private equity funds — LP agreements and rigorous acquisition evaluations.

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Your Fund’s Trusted Counsel

As a private equity fund, bulletproof Limited Partner (LP) agreements and rigorous acquisition evaluations are crucial to ensuring your success. Madgett Law stands ready to be your trusted general counsel, providing unparalleled expertise in both areas.

LP Agreements

  • Drafting and Negotiating Ironclad Agreements: We craft LP agreements that protect your interests, clearly define rights and responsibilities, and ensure compliance with all applicable regulations.
  • Anticipating and Mitigating Disputes: We anticipate potential conflicts and incorporate clauses to facilitate swift and amicable resolution, minimizing disruptions to your operations.
  • Tailoring Agreements to Fund Specifics: We understand that each fund is unique, and we tailor LP agreements to address your specific investment strategy and risk profile.

Acquisition Evaluations

  • Due Diligence with Unwavering Scrutiny: We conduct comprehensive due diligence, uncovering potential risks and hidden value opportunities in every acquisition target.
  • Identifying Critical Deal Points: We analyze key deal points, including financial projections, legal risks, and regulatory compliance, providing you with a clear understanding of the potential impact on your fund.
  • Evaluating Synergies and Risks: We assess the strategic fit and potential synergies of each acquisition, identifying and mitigating potential risks to maximize returns for your LPs.

Why Choose Us?

  • Specialized Private Equity Expertise: Our team possesses in-depth knowledge of private equity regulations and best practices, ensuring your LP agreements and acquisition evaluations are industry-leading.
  • Proactive and Solutions-Oriented Approach: We anticipate your needs and proactively address potential challenges, providing you with clear and actionable solutions.
  • Unwavering Commitment to Client Success: We are passionate about your fund’s success and committed to delivering exceptional legal services that empower you to achieve your investment goals.
  • Proven Track Record of Excellence: Our experience in advising successful private equity funds speaks volumes about our ability to deliver results that exceed expectations.

Don’t settle for anything less than the best legal counsel for your private equity fund.

Contact us today to schedule a consultation and learn how we can safeguard your interests and empower your fund’s journey to success.

Common questions

What does a private equity fund actually need a lawyer for?

Three recurring things: the fund documents that govern the relationship with limited partners, the diligence and structuring on each acquisition, and the disputes that surface when a portfolio company or a partner underperforms. The first is where the most durable value sits, because a badly drafted LP agreement causes problems for the life of the fund.

What terms in an LP agreement cause the most trouble later?

Capital call mechanics and default remedies, the distribution waterfall and how clawback is handled, key-person and removal provisions, expense allocation, and the scope of the GP's discretion. Disputes rarely arise from the headline economics — they arise from the paragraph nobody negotiated because it seemed procedural at the time.

Do fund interests count as securities?

Interests in a fund are generally treated as securities, which brings registration and disclosure obligations at both the federal and state level unless an exemption applies. Exemptions have conditions, and the conditions are where offerings go wrong. This should be settled before anyone is solicited, not after subscriptions have come in.

How much diligence is enough on an acquisition?

Enough to know what liabilities travel with the target and what the deal actually depends on. That means the contracts that carry the revenue, the litigation and regulatory exposure, employment and benefits obligations, IP ownership, and whether the financials reflect reality. Where the risk cannot be diligenced away, it should be priced or allocated in the agreement rather than absorbed silently.

Can you serve as outside general counsel rather than deal-by-deal?

Yes, and for most funds it works better. Counsel who already knows the fund documents, the portfolio, and the LP base is faster and cheaper on each transaction than counsel who has to be brought up to speed. We are structured to give senior attention on that basis without a large firm's overhead.

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