Ask Simpson Thacher Anything (26/27)

[Paul@SimpsonThacher]

Hi, I’m a law student on track for a 2:1 overall, but I have had to resit a module.

The reason for the resit is that I accidentally missed an assignment deadline, despite having completed the work. I don’t think this would qualify as mitigating circumstances.

Would having a module resit in these circumstances be a concern for graduate recruitment applications, or is it still worth applying?

Thanks!

Hi - yes, it's worth applying!

 

[Paul@SimpsonThacher]

@Paul@SimpsonThacher

Hi Paul, given that the training contract is specifically focused on private equity, to what extent do you expect applicants to have prior private equity experience? Is it more important to demonstrate a genuine understanding of and interest in the sector, even where someone’s previous legal experience has been in other practice areas?

Hi @Mace2121

Good question. We recognise that most students and recent graduates will not have had the opportunity to gain direct private equity experience, so this is certainly not something we expect applicants to have.

What is more important is that you have taken the time to understand private equity, can demonstrate a genuine interest in building a career in the sector, and can explain why this particular route appeals to you. We would encourage applicants to research the work, the clients and the broader commercial context so that they can articulate an informed and personal motivation for applying.

Experience in other legal practice areas can still be very valuable, particularly where you can reflect on the skills and insights you have gained and explain how these have shaped your interest in private equity. Ultimately, we are looking for potential, curiosity and a well-researched motivation, not a particular type of previous work experience.

Thanks,

Paul

 

[Dilraj - Simpson Thacher]

Hi again, I also had two questions for Christine and Dilraj about how their practices operate in different contexts.

@Christine - Simpson Thacher & Bartlett , I noticed that you worked on Oakley Capital’s investment in Steer Automotive as part of the Funds team. What issues bring a funds lawyer into an acquisition, and how does that work differ from a conventional fundraise?

@Dilraj - Simpson Thacher , I noticed that you have acted on both sponsor-side and lender-side acquisition financings. What changes most in how you assess a deal when you switch sides, and has working on both sides influenced how you advise sponsor clients?

Thank you for your time!

Hey - thanks for your question! When acting sponsor side, we're primarily concerned with ensuring that the borrower and the group has the flexibility to go about their general business with as few restrictions as possible whereas lenders seek to tighten the conditions before the group is able to do something i.e. make a further acquisition or pay a dividends etc. So it is the matter of finding the correct balance of flexibility/restriction, and we will assess the borrowing strength of the group to guide those decisions, when we are acting both lender or sponsor side.

Working on both sides has definitely influenced how we advise sponsor clients. We are able to anticipate certain issues that may be raised by lender counsel (having been in their position) and address them pre-emptively.

 

[Paul@SimpsonThacher]

Hi Paul, thank you for being here again. My question is specifically for applicants who have qualified in another jurisdiction and are currently undertaking postgraduate studies in the UK.


On the vacation scheme application form, are we able to include extracurricular activities from our undergraduate studies and prior legal training, even where these took place several years ago? And in terms of how we present them, do you prefer applicants to go into depth on a select few activities or to cover a broader range briefly, highlighting the skills gained from each?


Thank you.
Ejiro Ayara

Hi @Winifred

Yes, absolutely. We're interested in understanding the experiences that have helped shape you, so if extracurricular activities from your undergraduate studies or previous legal training are relevant and demonstrate skills, achievements, or interests that are important to your application, you should feel free to include them, even if they took place several years ago.

In terms of how you present them, there's no single right approach. Some candidates choose to focus on a smaller number of experiences and discuss them in greater depth, while others highlight a broader range of activities more concisely. Both approaches can work well.

Ultimately, we're much more interested in the quality of the examples and the reflection behind them than the number of activities listed.

Thanks,

Paul

 

[Ediz - Simpson Thacher]

Hi! Thank you all so much for your time! I noticed during my research that Simpson Thacher has worked on some of the biggest funds in terms of value raised. I was wondering if there is something particularly interesting in terms of the role of lawyers in these larger funds compared to, e.g. mid-market funds.

Thank you for the question! From the perspective of fundraising counsel, larger funds / sponsors will tend to have more institutional terms / positions on certain points. The larger funds (e.g., a 500m vs 10bn) fund will also be likely to require greater project management - to name a few examples: the 10bn fund may have multi-currency vehicles in which LPs invest; additional vehicles through which HNW individuals invest; a larger pool of contacts at the sponsor who you need to co-ordinate with. The larger sponsors will also tend to be at the cutting edge of fund mechanics, structures, etc. You should take all of this with a pinch of salt as working on smaller funds will provide its own pros (see Christine's response to an earlier question). Best, Ediz

 

[Ediz - Simpson Thacher]

With private equity sponsors increasingly using continuation funds and other GP-led transactions, how has the work of Simpson Thacher’s Investment Funds team changed?

The team has now grown and includes a dedicated secondaries team that will, by way of example, advise on continuation vehicles. I a member of the primary fundraising team but there are numerous opportunities to work for both teams (and this is encouraged to give you a broader experience). Best, Ediz

 

[Ediz - Simpson Thacher]

Hi all, thank you all for taking the time to answer our questions. I have two:

@Ediz - Simpson Thacher , I saw that you were seconded to Hellman & Friedman’s legal team while
it was raising major funds. How has seeing the process from the sponsor’s side changed the way you advise funds clients in private practice?

For the wider panel, when do the Investment Funds and Banking & Credit teams work most closely during a sponsor’s investment, and what would a junior associate contribute when both teams are involved?

Thank you!

Thanks for the question! Three points stand out to me: (1) advising the client early on if any gating items to negotiations with investors are anticipated; (2) thinking about how certain terms impact a sponsor's operations (i.e., not just agreeing to terms in a vacuum); and (3) viewing investors as partners (unlike litigation, there is no 'winning' per se). Best, Ediz

 

[Ediz - Simpson Thacher]

Hello! Thank you for your time.
My question is for @Ediz - Simpson Thacher

You have worked within Simpson Thacher’s Funds team and on secondment at Hellman & Friedman. Did seeing the sponsor’s decision-making from inside change the way you approached fund formation work when you returned to private practice? Was there a particular issue you began to view differently after seeing the sponsor’s perspective?

Hello! Please see my response just above. Best, Ediz