Strategic Cooperations Between Private Equity Sponsors and Corporate Investors: Key Structuring Considerations and Deal Terms for JV Arrangements

March 18, 2022 | BY

Susan Mok

Geoffrey Chan and Xuan Zhang of Skadden, Arps, Slate, Meagher & Flom highlight some key factors to consider when setting up a joint venture cooperation including structuring considerations, structuring options and deal terms

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Summary 

  • To ensure the alignment of a PE sponsor's financial objectives over a fixed period with a strategic investor's long term objectives, the structure and key terms of such cooperation should be carefully planned.
  • Careful planning of the JV's governance structure and its control over portfolio companies is required.
  • In addition to the structuring considerations and legal forms there are several commercial and legal terms that the parties will want to carefully consider.