by Thomas Muskett-Ford

Law firms dealing with private equity managers who are unaccustomed with the region can face an uphill struggle as they explain unfamiliar risks, dispel common misconceptions and address the mismatch between common and civil law. Thomas Muskett-Ford reports from Latin Lawyer’s fifth annual private equity conference on how lawyers are dealing with their foreign clients’ concerns and creating innovative structures to drive their deals through

There are three key points during the life of any private equity deal: the initial risk assessment, the deal’s over­arching governance structure and the final exit plan. The complexities surrounding each are often compounded for private equity investors entering a new region, such as Latin America. Foreign investors can become preoccupied over situations that present little risk at the expense of much more serious concerns. Furthermore, the mismatch between common and civil law can become readily apparent as a deal develops and an investor’s familiar governance models cannot be applied. A panel at Latin Lawyer’s fifth annual private equity conference sought to explain how law firms in Latin America can guide new private equity clients through uncharted territory.

Latin Lawyer