The Lawyer In-house Private Equity Report 2013 is essential reading for those wishing to enhance their understanding of the private equity sector.
With the exception of some of the large players such as Blackstone Group, Carlyle Group and Kohlberg Kravis Roberts & Co (KKR), which have grown into sizeable listed multi-asset managers, the majority of private equity houses operate as lean partnerships with relatively small headcounts.
According to data provider Prequin, buyout firms on average employ seven members of staff per $1bn of assets under management (AUM), while those with an AUM of less than £250m have around nine people on the payroll. It is hardly surprising that many are yet to embrace the concept of an in-house legal function.
This is confirmed by The Lawyer’s exclusive research, which found that only 16 of the top 30 UK-headquartered buyout funds have an in-house legal function, with Apax Partners, Cinven and Equistone employing just one qualified lawyer each.
Noteworthy examples of those that do not have in-house legal capability include BC Partners, Montagu Private Equity, Lion Capital and Graphite Capital Management. The latter firm’s senior partner Mike Innes, however, does have a legal background, having trained as a solicitor with Clifford Chance before heading off to launch an internet-based recruitment consultancy and then joining the Bank of Scotland’s integrated finance team….
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