Session 8: Private Equity

This part of the course deals with selected tax and sustainability aspects that are typically relevant for private equity funds as buyers and shareholders of portfolio companies. In particular, the requirements of a private equity fund's status as an asset manager for German tax purposes are explained (e.g. structuring corporate governance in portfolio companies, differentiation between "tax-damaging" participation in the management of portfolio companies and "tax-damaging" exercise of shareholder rights, so-called equity commitment letters and collateralization of liabilities of portfolio companies). In addition, an overview of the legal challenges involved in implementing ESG criteria in the investment process will be provided.