Course Description: The alternative asset classes of private equity and hedge funds represent a significant and growing share of investment activity worldwide and are at the center of many of the most pressing current issues in finance and financial law. While traditionally lightly regulated, both areas have received increasing regulatory attention, particularly since the global financial crisis. Both also figure prominently in major ongoing debates concerning financial stability, market efficiency, corporate governance, financial innovation and complexity, and even income inequality. This course introduces private equity and hedge funds from the perspectives of finance, regulation, and legal practice, covering the foundational issues of securities, tax, organizational, and fiduciary law that they raise. Students will learn the basic regulatory framework applicable to fund structuring, fund managers and sponsors, fund offerings, and fund investments and gain experience with the key agreements among the parties involved. In addition, the course will critically assess the current regulation of private equity and hedge funds and proposals for reform. Through reading materials, course discussions, guest lectures, and group work, students will gain insight into the perspective of fund managers, advisors, investors, those who transact with such funds, and those who regulate the fund industry.
Grading: Grades will be based solely on a closed-book final examination.
Prerequisites: Students must have completed or be concurrently enrolled in Business Associations or a similar introductory course on business organizational law/company law taken at another law school (whether in the U.S. or abroad). Prior coursework in securities regulation and taxation may be useful, but is not required.
|Course Areas of Practice|
Knowledge and understanding of substantive and procedural law