Companies raising private equity finance
Charltons provides high impact advice on private equity financing to start-up, early stage and growing companies. Our lawyers provide an insightful and highly personalised service, building deep relationships with clients. We fully understand the concerns and expectations of founders and entrepreneurs of growing businesses.
We advise businesses at every stage of the private equity financing and investment process, from start-up funding through “Series A” and subsequent preferred investor rounds, pre-IPO investments and listings. With our extensive experience of M&A and IPO transactions, we can advise whether an early investment structure will facilitate a subsequent liquidity event such as a trade sale or IPO. We can also assist in pre-IPO planning and structuring (including due diligence, Hong Kong Stock Exchange compliant pre-IPO investments, and group reorganisations).
Charltons provide smart and practical advice to clients, such as negotiating which information and supervisory rights and operational vetoes to grant investors, board representation, the extent of restrictions on founders (for example, non-compete undertakings, and restrictions on transferring equity), anti-dilution protection and issues to consider on “down” rounds, the warranties to be given by founders and any limitations on liability for breaches of those warranties.
We also advise emerging companies on alternative financing arrangements to suit their particular needs, such as working capital loans and other debt financings, including equity-linked or convertible debt securities.
We also act for angel and strategic investors, venture capital / private equity funds and investment banks that finance emerging growth companies. In some cases where appropriate we are able to make introductions to potential strategic partners or sources of financing, relying on our wide network of contacts in various industries and investment communities. Companies can also benefit from our deep understanding of the dynamics, structures and objectives of private equity / venture capital funds and other financing organisations.
Charltons offers Hong Kong investment legal advice for Hong Kong companies considering raising private equity finance