Private Investment Funds

This course will focus on the business law and tax issues relating to private investment funds, with a particular focus on private equity, venture capital, and hedge funds. Students will be introduced to the structures of various investment funds and business law issues important to fund sponsors in choosing entity types. The course will use real-life examples of present day funds and allow students to become familiar with economic, legal, and tax considerations that are involved in representing fund sponsors and investors. Areas of focus will include: (1) the regulatory structure applicable to private investment funds, including the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisors Act of 1940, and ERISA; and (2) tax considerations for fund sponsors and investors, including hotly debated “carried interest” tax issues. Guest speakers will include managing partners of leading Chicago private equity funds and fund advisors.

Sequence and Prerequisites: Some background in business, finance, economics, tax, accounting, and/or securities regulation is desired, but not required.

Evaluation: Students in the class will be evaluated based on: (1) a negotiation exercise undertaken from the standpoint of a hypothetical fund sponsor and; (2) a case study on an investment fund of their choice.