Private Equity Law Report: Using Delaware Statutory Series LLCs to Offer Customization to Investors

Private Equity Law Report recently spoke with alternative entity practitioners about the use of Delaware registered series entities and how they may be useful to private equity sponsors.

Morris Nichols partner Lou Hering shared his insights from working with mutual fund entities as well as in the PE space. “We tend to turn an existing entity into a series entity as frequently as creating a series vehicle from the beginning,” Hering observed.

Series vehicles can also be divided, which can be a useful option in some instances involving secondaries. “Having a series from the beginning or having the wiring where a GP could convert the entity into a series entity makes the secondary easier because the sponsor is already halfway there,” Hering advised.

Read the full article from Private Equity Law Report.