Funds
Most US and Asia Based VC Managers Are Outside the Scope of GDPR and Need Not Comply With It
We have been getting a lot of questions lately about whether and how GDPR may apply to US and Asia based managers of venture capital funds. This is a rapidly evolving area, however, there is a sound legal view to the effect that many of the managers we work with […]
Trademark Considerations and Naming Venture Capital Funds
When choosing a name for a fund, there are a number trademark-related questions to consider. Giving thought to these issues early on can help you build a strong brand and avoid legal disputes down the line. Is your venture capital fund name a trademark? The term “trademark” generally includes any […]
What You Need to Know About Erisa and Accepting Capital Commitments from “Benefit Plan” Investors
ERISA is a U.S. federal statute which regulates, among other things, the management and investment of assets of employee benefit plans (such as U.S. pension plans, 401(k) plans and their related trusts). Importantly, ERISA’s regulations cover not just the employee benefit plans themselves, but also any entity deemed to hold […]
Issues for Consideration When a Managing Director Departs Your Firm
While we advise on this topic daily, hopefully most of our fund clients will only have to think about matters related to the departure of senior investment professionals, i.e. managing directors (MD’s) a small handful of times in their organizational lives. Having an MD depart your firm is not a […]
I Have a Deal in the Pipeline, but My New Fund Hasn’t Closed Yet – Help!
The Cooley fund group hears from clients with great frequency that an opportunity to make an attractive portfolio company investment – perhaps in a competitive deal, where access is limited – needs to be captured before the scheduled closing of their new venture capital fund. The dilemma comes up from […]
Should I Use a Placement Agent?
The issue of whether to use a placement agent is one that we are asked to advise on quite frequently. It’s a good question, for sure. In our experience the answer varies from situation to situation, and may not be straight forward. Many factors drive the analysis. Is it a […]
S Corporation “Dodge” Won’t Work to Skirt the Carried Interest Rules
On February 14, Bloomberg News published an article that quickly made its way around among private investment funds and their lawyers – I received about 10 emails before 9 am from clients. The article discussed a potential structure for general partners of funds (in the article hedge funds, mostly) to […]
Policy Mandates for Exempt Reporting Advisers
The private fund clients we work with are often excused from full registration as investment advisers (“RIAs”) with the SEC. But, most of them are still required to file with the SEC as “exempt reporting advisers” (“ERAs”), usually under the venture capital exemption, though sometimes additionally or exclusively under the […]