Both Institutional investors (like pension funds) and large private equity firms funded by investors are active in the private equity sphere. Because private equity entails direct investment—often to gain influence or control over a company's operations—a significant capital outlay is required, which is why funds with deep pockets dominate the industry. Sometimes private equity investors may aim to acquire control of public companies with plans to take them private and delist them from stock exchanges. The investments can offer very strong return streams that are frequently much less correlated with indices than the returns available in classic public market investment opportunities. Depending on the fund size and investment strategy, a private equity firm may seek to exit its investments in the short or medium run, in order to generate a multiple on invested capital and an internal rate of return.
The lawyers in DGKV’s prestigious M&A practice group have acted as leading local counsel on high-profile private-equity M&A projects, and are experienced at advising on the variety of legal matters inherent in any M&A project, including merger clearance procedures, corporate changes and restructuring of companies, employment law, tax matters, closing, and post-closing legal matters, among many others.