I'm a partner at a mid-size firm, considering an opportunity to move in house at an early stage private equity firm. Beyond economics, how would you evaluate this opportunity?

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Would this be to join other lawyers? Or would you be the only one? Is there a general counsel? What is the outside counsel budget? Who does legal report into? If it's the CFO, run. Legal should have it's own outside counsel and ops budget and reporting line into the CEO, preferably with a role on the management committee.

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Agree but, based on inhouse GC experience, it is sometimes better not to be on the management committee but be, essentially, a senior/top advisor to it.

This has the potential of being an opportunity of a lifetime. It is definitely worth serious consideration. In addition to the issues raised in the other posts, I would also recommend:

1). That you consider the risk profiles of the individual companies in which the PE has a stake and the aggregate entity risk profile;

2). That you understand how the operating companies resolve legal issues (i.e., will they look to you or are they allowed to retain their own counsel); and

3). That you engage a cross section of professionals in a variety of disciplines that can help you find cost-effective strategic legal solutions.

I would also ask to see the notes to financial statements that disclose outstanding legal claims.

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I agree re the opportunity. Having constructive feedback like this is extremely helpful. Thank you.

Great, probing questions. The answers are that there are no other attorneys, the role reports to CEO, serves on the Board, and is involved in all budgeting decisions.

Oh that's great. IMO if this works for you financially, given the structure, it sounds like a great opportunity. 👍

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