Germany: Private Funds
Before the financial crisis hit, German private funds lawyers reported high levels of work: there was a lot of capital creation and a renewal of the investment market with company restructurings. Five years on, lawyers cannot ignore the effect that high-risk funds and investments have had on the dire European economic situation. Without a financial cushion all it took was one bad investment to lead to the collapse of many funds, including pension and real estate funds, leading to economic instability. As a result, a new EU directive has been introduced to monitor the behaviour of fund managers, which, as German lawyers remarked, has seen a reduction in funds deals in their country and shifted the focus to regulatory and compliance work. We feature 16 lawyers in this chapter.
As “one of the best firms in Germany for this work”, P+P Pöllath + Partners features four lawyers in this chapter. Patricia Volhard is a fund structuring and regulatory lawyer specialising in alternative assets, private equity and real estate. Her client list consists of domestic institutional investors, alternative investment fund managers and companies. Founding partner, Andreas Rodin has over 25 years’ experience advising clients on tax and private funds. He represents buyers and sellers of German international entities, with a focus on investment fund and corporate financing. Michael Best is principally a tax adviser. Based in Munich he advises in the tax aspects of private equity funds and investments in cross-border deals. As a member of the tax practice, he is involved in matters for Barclays Private Equity, The Bank of Bermuda and Apax Foundation. Amos Veith advises foreign institutional and private investors on private funds.
Freshfields Bruckhaus Deringer LLP boasts two lawyers. In the Frankfurt office, co-head of the financial institutions sector group Gunnar Schuster concentrates on banking, insurance and investment funds and regularly works with the German financial services regulator. Jan-Holger Arndt splits his time between Düsseldorf and Hamburg, providing asset financing and investment advice to companies and financial institutions. He has a particular niche in structured asset investments through closed-end funds.
Also fielding two lawyers is Hengeler Mueller. Thomas Paul and Edgar Wallach both received a lot of nominations from international contributors. Paul focuses on compliance in the financial sector, investment funds law and asset management, and Wallach counsels on the full range of funds matters, including mutual funds, asset management, investment law and REIT funds.
Roland Baum of his own firm, Baum Financial Services Law Team, specialises in guiding financial services companies in domestic investment law, hedge funds, alternative investments and trading law.
Friedrich Hey at Debevoise & Plimpton LLP is “without doubt” a “leading name” in this discipline. His practice centres on cross-border tax planning for US, Asian and German companies, specifically on private equity, distressed debt and foreign investment funds. He has acted for Reynold Group Holdings, Ripplewood Holdings and United Biosource on sales and purchases.
Achim Pütz at Dechert LLP is an “experienced funds lawyer”, with a focus on structured debt, investment strategy and alternative fund structures. He is “recommended” for his knowledge of the regulatory implications of investment commodities in the German market and frequently represents institutional investors in alternative investments.
At GSK Stockmann + Kollegen, Markus Escher unites his banking and funds practice by acting for financial institutions on asset management and compliance affecting banking regulation. He has acted as an expert adviser to the German Bundestag on legislation relating to investment payments and is “very impressive” according to peers.
At Kaye Scholer LLP in Frankfurt, Thomas Jesch’s private equity practice is informed by his tax and M&A experience. He acts on distressed funds, non-performing loans and REITs relating to global M&A transactions.
At Latham & Watkins LLP, Stefan Süss is a leading lawyer and the chair of the German tax group. He practices domestic and international tax law related to private equity funds and transaction financing. At PwC in Frankfurt, Joachim Kayser is a hedge fund specialist advising on investments in German stocks and equities and their tax implications. He is “outstanding” according to respondents to our survey.
Sonya Pauls of SJ Berwin LLP travels between the London and Munich offices and advises on the setting up of private equity funds and general and alternative investment opportunities, with an emphasis on emerging markets. She is a “top expert in PE fund structuring, in particular with regards to off-shore structures” and regularly acts for national and multinational fund managers and leading private financers. Also in Frankfurt, Marietta Lienhard, at White & Case LLP “works well in both regulated and unregulated” private funds, domestic banking investment and financial services law. She counsels on the procedures for setting up and maintaining funds and managing portfolios.