Should You Lateral? Pt. 6: Funds & Investment Management Associates
Advising on the formation and function of investment funds is a large and growing practice at BigLaw firms. It take a lot of nuanced and specific legal advice for a private equity firm or other company to set up an investment fund. Additionally, once a fund is set up, companies may require ongoing legal compliance advice for their fund, especially when it's classified as a "registered fund." As a result, funds work is wide, varied and different by firm. The majority of associate position openings fall under the category of "investment funds," but firms can also be looking for "private funds" associates, "registered funds" associate, "fund formation" associates, "fund finance" associates and "Investment Company Act / 40 Act" associates.
Funds attorneys are often busy, even when connected deal practices like M&A or capital markets have slowed. For example, a lot of funds practices are busy now setting up real estate funds (such as REITs or real estate investment trusts).
If you're a funds associate at a BigLaw firm, there are lots of different reasons why you might consider lateralling to a different firm's funds practice. Here are some of them:
To change your type of funds practice. In BigLaw funds practices, there are two major types of attorneys: a) those that advise on private funds created for the purpose of a major transaction (like the purchase of a company); and b) those that advise "registered funds" like mutual funds on government regulatory issues. There are considerably more attorneys that work in private funds than registered funds. Therefore, particularly if you are a junior associate that has been working as a registered fund attorney, but want to move into private funds, a lateral move makes a lot of sense.
To change the types of funds that you advise. In addition to the different types of funds practice groups, there are also different types of specific funds that attorneys advise on. For private funds practice in particular, you may advise on private equity funds, venture funds, hedge funds or a mix of all of the above. For example, I've talked to several associates that want to focus their funds practice on working with venture funds because this means working more with emerging and start-up companies. But this type of focus is not available in every BigLaw funds practice.
To move to a firm with a larger or more reputable funds practice. If a BigLaw firm has a corporate practice, chances are they have at least a few funds lawyers. Yet, because of the nature of some corporate practices, the funds group itself could be quite small. Other firms have large multi-office fund practices that work with some of the biggest and most reputable fund sponsors and investors in the world. Therefore, in order to represent the most sophisticated fund clients or to have really strong advancement opportunities as a funds associate, you may need to make a lateral move.
To increase the level of your responsibility at a faster rate. If you're an associate that has worked in private fund formation, there's a good chance that you have been able to be solely or mostly responsible for a particular fund deal early on. Fund formation can be a volume-based legal practice. And once you've worked on a couple fund deals, partners may trust you to work independently one. Others will not. If you're not getting the amount of responsibility that fund associates at other firms are getting, the lateral move makes a lot of sense.
To relocate. Fund practices exist in many major markets across the U.S., including markets as varied as New York, San Francisco, Boston, Chicago and DC. Additionally, a lot of funds groups are multi-office and are often open to associates working remotely or very flexibly.