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Private Equity

As a private equity fund, investor or management team, you face daily pressures of valuations, performance, exit strategies and regulation. The relative availability of debt, together with significant levels of capital committed to the private equity industry or held on corporate balance sheets, has strongly impacted the competition for assets and pricing levels.

A cohesive private equity strategy will support you to ensure that you acquire the right assets and obtain maximum value from your portfolio. 

We are structured around your business sectors and those of your targets. This means we can advise you on all stages of a fund’s life-cycle, from formation and administration to the making of investments, portfolio monitoring, restructuring and exiting.

Your deals are executed according to tight deadlines and complex regulatory constraints. Our multidisciplinary specialist team in South Africa, supported by over 70 offices globally can mobilize quickly, whatever the size and complexity of your transaction. 

How we can help 

With tax, exchange control, regulatory, B-BBEE, employment, banking, commercial and disputes expertise, we can also assist in the protection and growth of your funds and investments.

With extensive experience covering all aspects of private equity and venture capital, including:

  • establishing and structuring private equity and venture capital funds
  • advising on investments into private equity and venture capital funds, including tax, exchange control considerations, broad-based black economic empowerment and regulatory approval
  • structuring and advising on investments by private equity and venture capital funds, including due diligence investigations, tax structuring, regulatory considerations, exchange control, competition and the acquisition, disposals and related transactional activity of these funds
  • advising on company law, governance and management incentive issues affecting portfolio companies and private equity firms
  • advising as to exit strategies including the efficient structuring, negotiation and execution of initial public offerings, trade sales and recapitalisations

Whether your deal is in the upper or mid private equity or venture market, our specialist lawyers can guide you towards the best business outcome in your home markets and across multiple jurisdictions.

They have outstanding industry knowledge and experience, and a practical understanding of the law. They always come back quickly and are available when needed! They make my business their business which brings comfort.

Legal 500 | Corporate & Commercial, South Africa, 2023

The individuals at CMS have been around the block and know what to ask and look for. They make themselves available and respond to queries urgently. They know my business intimately.

Legal 500 | Corporate & Commercial, South Africa, 2023

The team is instrumental in commercial negotiations. It is a very value-adding team to work with.

Chambers & Partners, South Africa, 2024

CMS RM Partners is by far one of our preferred legal advisers. The lawyers are highly responsive and very strong on the commercial side.

Chambers & Partners, South Africa, 2024

The team is very commercially aware, able to understand our business and our challenges and advises us accordingly on a number of transactions.

Chambers & Partners, South Africa, 2024

They kept us well informed and were always on time with our deadlines.

Chambers & Partners, South Africa, 2024

The lawyers have a very good grasp of technical matters.

Chambers & Partners, South Africa, 2024
29/05/2023
CMS European Private Equity Study 2023
We are very pleased to share with you the second edition of the CMS European Private Equity Study 2023. This study analyses hundreds of Private Equity deals that we advised on in 2022 and previous years, providing unique insights into market trends and differences between private equity and trade deals. Key findings: Deal activity remained strong until Q3 2022, but experienced a significant drop in Q4. New investments accounted for 85% of PE deals analysed, with fewer exits and secondary buy-outs in 2022 compared to 2021. Bidding processes decreased in 2022, potentially due to less involvement of PE funds on the sell-side. Entry into new markets was the most common deal driver (64% of deals), while digitalisation was no longer a deal driver­Tech­no­logy, media, and telecoms (TMT) was the busiest sector, followed by Real Estate & Construction and life sciences. Use of MAC clauses decreased to 10% in 2022, compared to 15% in 2021. Fewer FDI approvals or clearances were sought in 2022 (8%) compared to 2021 (15%).W&I insurance played a prominent role in PE M&A transactions, increasing with deal value. Locked box mechanisms for setting purchase price were preferred in 80% of PE deals, while purchase price adjustments decreased. Earn-out provisions increased overall in 2022 but were more common in smaller deals than higher value deals. ESG considerations have not yet featured in legal due diligence or transaction documents. Management incentive schemes saw shorter vesting periods, increased management allocation, but tightened leaver provisions. Overall, there were buyer-friendly developments in some deal metrics, such as the use of "tipping" baskets.
28/06/2023
CMS Expert Guide to International ECM Listings
Equity markets offer exciting opportunities for businesses to raise capital, but with different markets in different jurisdictions providing access to different investors, companies need to consider carefully which market will offer the best access t
28/07/2022
CMS Private Equity Global Brochure
Private equity investors face daily pressures of origination, valuations, execution, performance, exit strategies, fund raising and regulation. At CMS, our private equity strategy is designed around our...

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24/08/2022
Foreign investors could consider equity equivalent programme as BBBEE alternative
An equity-equi­val­ent programme may entail a public or private programme, or a combination thereof, designed to fulfil the requirements of BBBEE ownership.  SA’s Broad-Based Black Economic Empowerment...
17/08/2022
Private Equity brochure
Private equity investors face daily challenges, including fundraising, origination, valuation, execution, performance, exit strategies and regulation. Recovery from the global pandemic has added an additional...