Private Equity

Overview

OUR Practice
Stradley Ronon is a trusted advisor to middle-market private equity funds and their portfolio companies through every stage of the investment life cycle. Our practice focuses on the value-creating transactions of our fund clients, as well as the representation of sponsor-backed portfolio companies. In addition, we advise private equity and other private investment funds on formation and regulatory matters, leveraging the deep expertise of the attorneys in our industry-leading investment management practice.

Private Equity

YOUR Challenges
We understand the complex challenges our private equity clients face in creating and sustaining equity value. That’s why we view our clients as business partners and make their success our goal.

Whether it’s on the buy or sell side, transaction costs can significantly impair value, which is why our attorneys are skilled at executing transactions expeditiously and cost-effectively. That begins with structuring a transaction that is tax-efficient, facilitates effective governance post-closing and enables exit scenarios that maximize the rate-of-return objectives of the client. It also includes efficiently identifying the legal and business risks inherent in an investment transaction, and properly pricing or allocating such risks.

We appreciate the distinct challenges and pressures newly sponsored companies face as they operate with new bank debt and confront recently established growth objectives. Following closing, we are often engaged to assist fund clients in the active management and operation of portfolio companies, including mergers & acquisitions, corporate governance, incentive equity and management compensation, employment matters and credit facility compliance.

OUR Experience
With decades of collective experience, our seasoned private equity attorneys bring market-informed knowledge to a wide range of sophisticated private equity transactions for an array of private equity funds, including buyout funds in various leveraged acquisitions and recapitalizations, mezzanine funds in subordinated lending and equity financings, and growth equity funds in minority growth investments. In addition, we draw upon the resources and experiences of our professionals across a variety of disciplines, including tax, leveraged finance, employee benefits, intellectual property and environmental law, to provide an integrated approach to executing transactions.

What’s more, we recognize we cannot be successful partners without an in-depth understanding of the industries in which our clients operate so that we anticipate and address legal needs as – or before – they emerge. This has enabled us to guide our clients through unique investment challenges in industries such as business services, manufacturing, health care, financial services, consumer products, hospitality, software, technology, education, packaging and distribution.

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Representative Matters

Leveraging their vast experience, our private equity attorneys have handled a wide range of investment transactions and exits, including:

  • Leveraged Buyouts
    Represented a buyout fund client in the $170 million leveraged buyout of a leading hair care products company.
  • Leveraged Recapitalizations
    Represented a buyout fund client in the $50 million leveraged recapitalization of a for-profit post-secondary education company.

  • Dividend Recapitalization
    Represented the portfolio company of private equity sponsors in a $20 million leveraged dividend recapitalization in the transportation industry.

  • Going-Private Transactions
    Represented a buyout fund client in the $125 million levered going-private acquisition of a Nasdaq-listed company in the educational products industry.

  • Management Buyouts
    Represented an international restaurant group in a leveraged buyout by certain members of the management team.

  • Growth Equity Investments
    Represented a growth equity fund client in the $50 million growth equity investment in a leading medical equipment parts supplier.

  • Portfolio Company M&A
    Represented a former portfolio company (and later Nasdaq-listed public company) in more than two dozen stock and asset acquisitions of private companies with transaction values as high as $50 million.

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