Investment Funds

We recognize that establishing an investment fund involves bringing together a number of different elements to ensure your fund is established as quickly and efficiently as possible. It is important that your fund is structured in a tax efficient manner, is consistent with market practice and that you have a team that is responsive to you and to your prospective investors.

We also understand that clients wishing to make an investment into a fund want to understand the risks involved and to be advised on the structure of their investment, that the agreed commercial terms are accurately reflected in the documentation, and on the practicalities of completing the transaction.

Our Funds practice is part of our corporate practice group and operates with the support of a number of other groups within the firm in particular tax and financial services regulation.  We also have expertise in lending to funds from within our banking group.

We have wide experience of a variety of investment funds and structures providing investment in private equity, real estate and mezzanine finance through the use of limited partnerships, open or closed ended investment companies and a variety of other alternative investment vehicles. 

The funds team have experience acting for major players in the industry on their fundraising work and the partners pride themselves on their hands-on approach with clients.  Partners in the team have been described as being "a tremendous talent", "a responsive lawyer who knows his stuff" making clients feel they are in "safe hands" and "a great client lawyer... providing calm and very practical counsel in a complex area of legal practise".

Our principal areas of expertise

For fund managers who are fundraising, the team can provide you with lawyers with experience establishing onshore and offshore funds and who can advise you on commercial terms based on our experience establishing funds and on our fund review work for investors.  We can carry out an analysis of your existing fund documentation and advise you on minimizing potential risks and we have regulatory experts who can advise you on UK regulation and the likely impact of the AIFM directive.  Members of our tax team are experts who can advise on all aspects of fund structuring.

Our team can also help fund managers outside their fundraising cycle.  We can assist you to ensure that investment activity complies with the terms of the fund documents and on other operational matters of the fund. We have experience advising on co-investment structures and we can advise you on leaver/joiner issues including conducting an analysis of your carry documents prior to there being a leaver to minimize any drafting uncertainty.

Increasingly investors into fund structures want to understand the nature of the funds they wish to invest in and to have access to our funds team who have experience structuring funds as well as reviewing them.  The lawyers in the funds group have acted for a number of significant pension funds, insurance companies and other institutional investors and high-net worth individuals on providing a commercial responsive review of fund structures and their documents.

Private equity funds and mezzanine funds

Pinsent Masons is at the forefront of the private equity industry having for many years had representation on the BVCA Legal and Technical Committee.  The firm understands the industry and is second in Unquote's 2011 mid-market Barometer having advised on 16 deals with a value of £525 million (acting for clients such as Barclays Private Equity and Sovereign Capital Partners).

For Mezzanine funds in particular, we advise on the structuring of tax-efficient holding vehicles and on their operation to minimize tax risk. Back

Real estate funds

Our funds team works closely with the real estate group which is one of the largest teams of property specialists throughout the UK and in Dubai.  It was a finalist for Real Estate Team of the Year, The Lawyer Awards 2008 and 2009 and Real Estate Team of the Year, Legal Business Awards 2010.

Members of the funds team work as part of our real estate sector initiative to make sure we are aware of market trends and we are a member of the Association of Real Estate Funds. We have extensive experience of giving advice on a wide range of real estate fund structures including closed and open ended structures as well as REITs and PAIFs.  Our lawyers regularly act for fund sponsors, investors and asset managers. Back

Listed and authorised funds

We work closely with our corporate finance lawyers to provide a full service offering to fund sponsors and issuers as well as brokers and nomads in connection with listing onshore and offshore structures.  We use our extensive private funds experience to add additional layers into a listed structure to allow tax efficient incentive schemes for fund management teams.

Our funds lawyers work with colleagues in our financial services group to provide assistance to clients wishing to set up, operate or understand UK authorised funds as well as authorised funds established under the UCITS regime elsewhere.    We advise on REIT launches and on joint ventures and other transactions with REITs. We will be involved in the consultation announced in Budget 2011 to improve the REIT regime and have acted on one of the few PAIFs currently approved by the FSA.  Back

Shari’a-compliant funds

For Shari’a-compliant funds, our funds team is enhanced by Islamic finance specialists who have the expertise to structure your fund so that it is suitable for Shari’a investors.  Muhammad Abdullah Al-Harith Sinclair is Head of Islamic Finance and Eloise Walker is an expert in Shari'a-compliant tax structuring.  The Islamic Finance practice at Pinsent Masons is based both in London and Dubai with a particular focus on asset managers looking to market funds cross-border into the Gulf.  Back


Examples of our work

  • Advising on the structure and establishment of a number of venture capital funds
  • Advising a leading European mezzanine and equity investor on various aspects of its management incentive schemes
  • Advising some of the largest UK pension funds on private equity, real estate and infrastructure investments including one of the UK's largest public sector pension funds on over £1bn of investments
  • Advising a global client on its disposal of a fund structure for £141m to an institutional investor
  • Advising the investment products division of a major hedge funds manager on the establishment and promotion of a series of alternative investment funds which have raised in excess of $10 billion
  • Advising on the structure, marketing and establishing of various closed-ended funds investing in UK residential property
  • Advising on the structure and establishment of a UK-based mezzanine fund
  • Advising a European institutional investor as cornerstone investor in a new infrastructure fund including advising on structure and suitable investment terms
  • Advising REITs in relation to property acquisitions and structuring
  • Advising as sole external legal advisers to two of the largest authorised UK property funds
  • Acting for cornerstone investors in a number of evergreen development funds and renewable energy funds
  • Advising a number of RDAs and City Councils in relation to the establishment of their regional infrastructure delivery funds and property investment partnerships
  • Advising a start-up fund manager on its application for FSA approval, structuring and establishing its management incentive schemes and on the establishment and launch of a UCITS fund domiciled in Luxembourg
  • Advising a first time fund manager on the establishment and promotion of a student accommodation fund as well as advising on leverage arrangements
  • Advising the major global banks on a number of lending facilities to investment funds
  • Advising on the restructuring of a UK property fund including the conversion to an open-ended structure
  • Advising a founder investor in a high profile eco-friendly fund
  • Advising the company on the AIM IPO and fundraising and subsequent secondary fundraising of a timber fund
  • Advising on the IPO and fundraising and subsequent secondary fundraising by way of placing of a UK listed property fund