🎙 Insights from Jan Grüter, Partner at Addleshaw Goddard

Hi there! 👋

In this article, Chirag Morar interviews Jan Grüter, a Partner who leads the Private Funds team at Addleshaw Goddard in London. Jan talks about his career journey, explains private funds, and offers valuable advice for aspiring lawyers. Don't miss his key career tips at the end!

Can you tell us about your professional background and career journey?👩‍⚖️

I’m originally from Germany and moved to the UK at 16 to attend boarding school, initially planning to go back to Germany after a year but life had other plans! I finished school here and then attended university in England, where I studied law and secured a vacation scheme at Allen & Overy (now A&O Shearman). This opportunity led to a training contract with the firm, where I qualified in the investment funds team and worked there for nine years.

After nine years at A&O, I decided to step away from private practice and joined the Financial Conduct Authority. This role allowed me to broaden my horizon from transactional funds and asset management work to financial regulation, setting me up for having a blended practice today. Later, I moved in-house as General Counsel (Head of Legal) at Securis Investment Partners, an asset management firm that manages a number of funds.

Eventually, I returned to private practice, joining Addleshaw Goddard, as a Legal Director in the Private Funds team. After contributing to the team’s growth and the practice area's profile, I was promoted to partner, and I am now a partner in the Private Funds team in London which is part of a broader team of funds and corporate lawyers.

For aspiring solicitors unfamiliar with Private Funds, could you briefly explain what it is? 💸

Funds are essentially vehicles that pool money together for investment purposes. Private equity (PE) firms typically use these funds to acquire companies (often private companies) in sectors like healthcare, infrastructure, and consumer & retail and many others. The capital for these acquisitions is sourced from investors. Technically speaking, the "fund" is the legal structure that is used to pool this pool of money, which is my area of expertise.

After acquiring a company, PE firms work to grow the business and increase its value. My role involves setting up the mechanism that "houses" the investment, effectively establishing the 'investment fund'. For example, I have helped set up funds that then invest in infrastructure projects like roads and renewable energy, such as wind farms. I am currently helping to set up a fund within the impact investment space that is focused on investing in female sports, like women's football clubs and sports leagues. I have also worked on funds investing in afforestation projects and generation of carbon credits. And whilst I often work in the PE space on buyout funds, a big part of what the team does also includes venture capital, real estate and lending strategies.

As you can see, the work in funds is diverse and spans multiple sectors!

What do Private Funds lawyers do and what tasks do they typically take on? 📝

As private funds lawyers, we assist clients in establishing the fund and helping it to raise capital from investors. In the early stage, we advise on the best legal structure for their fund, whether it’s a limited partnership, corporation, or trust or another structure based on their specific needs and investor preferences.

We also draft a significant amount of legal documentation, including prospectuses that outline what the fund does, who manages it, its investment strategy, and any limitations, such as investment guidelines for capital allocation. We also draft the legal framework necessary for the fund’s operation, negotiate agreements, and handle the terms between investors and the fund. We may also help the team of individuals that will manage the fund to set up their own firm (which then acts as fund manager).

Given the international nature of funds, our work often spans multiple jurisdictions. Many of the fund structures we handle are not based in the UK; we frequently work with structures in Luxembourg and the Channel Islands and further afield in the US, Middle East and Asia. The same is true for the investments that these funds make which could be located anywhere in the world.

In addition to working with fund managers, we also represent investors (who invest into funds). In these cases, we review documents drafted by other firms, suggest improvements, and negotiate terms on behalf of the investors. For example, this could be a pension scheme looking to invest some of its members' financial contributions into a fund. Most of us will, once we are in employment, through pensions become indirectly invested in funds!

Much of my work overlaps with other departments in the firm or areas of the law:

M&A: Once a fund is established and ready to deploy capital, it typically engages in transactions such as mergers and acquisitions. This is where my colleagues in our Private Equity and M&A teams step in and get to help the funds that I helped set up to actually make investments or sell them later.

Banking: Funds often borrow money to create leverage to help acquire assets or manage cashflows and fund documents need to allow for that so we often work with colleagues in our banking team to ensure our documentation is fit for purpose.

Tax: We work with tax lawyers to ensure our fund structures are tax-efficient. Usually, this means that an investor in a fund should not be in a worse tax position when investing via a fund than if that investor had invested directly into the relevant investment.

Financial Regulation: A lot of what fund managers is touched by financial regulation – from rules that may govern how an investment manager is set up to how it can market the funds for which it wishes to raise capital. I work a lot with our financial regulation experts to help our clients understand complex regulations.

As a Partner at an international law firm, how does your work differ from that of associates or trainees? What are your primary responsibilities? 🤝

Clients are central to my work. I focus on keeping our existing clients satisfied and securing new business from them. Additionally, attracting new clients is crucial, as the work we bring in keeps our teams busy, generates fees and income for the firm and allows us to attract and retain future talent and lateral partners – all part of running a successful business. Before becoming a partner, and especially in the earlier days of my career as an associate, my primary focus was building technical knowledge, drafting and legal project management – all of that is still important as a partner but becomes more of a given with client and team management becoming more important the more senior you get.

I work with an amazing team of lawyers – from trainees to associates to legal directors as well as great support staff such as our business development teams as well as PAs.

Part of my role and that of others in the team is also to continue to grow our brand profile and market position. This might involve speaking at events internally or externally or publishing articles or just the old-fashioned coffee or catch up with current and new clients.

So, as a partner, my role extends beyond my private funds practice to contribute to the firm's overall growth and culture. The same is true for other partners in the team and firm and will mean different things to different people. To give a couple of examples for myself:

• International expansion: As a member of internal business focus groups dedicated to certain geographies, I play a role in the firm’s international development. This might mean trying to connect lawyers in our international offices with clients or working with lawyers in any new offices to see how we can collaborate and generate more work for the firm.

• Business development: Every partner is a co-owner of the firm and we all work with our senior management to achieve our growth objectives and make our firm the trusted advisor for anything our clients might need. This often involves sharing clients across practice areas and introducing them to other services the firm offers that meet their business needs and generally means collaborating with colleagues across the firm and at all levels.

• Diversity, Equity and Inclusion: DEI is really personal to me. As co-lead of LGBTQ+ Inclusion at our firm, I champion my community and others through participating in the firm's DEI initiatives and empowering our colleagues to do the same. Everyone here should feel that this is a place where they are valued for their authentic self.

In your experience, what key skills should aspiring commercial lawyers focus on developing to become successful in their careers? ✍️

To be a successful lawyer, you need a broad range of skills, but a few stand out to me:

Commercial Awareness: Clients value commercially minded individuals who can provide direct answers. They often want to know if there is a risk and if a particular action can be taken. Lawyers should be able to give succinct, opinionated responses. Being aware of daily business news and understanding how broader economic and industry trends impact your work is crucial.

Empathy and Adaptability: It’s important to put yourself in the shoes of those seeking your advice. Law is a people-centric business, so adapting to your audience and client style is essential. Understanding and responding to your client's needs and preferences can significantly enhance your effectiveness.

Genuine Interest: Be genuinely interested in your work. Much of commercial law operates on an international platform and has relevance to the wider community and global issues. For example, I’ve worked on sustainable funds and net zero initiatives, with funds that my team is working on helping governments achieve net zero through projects like raising finance for carbon capture solutions, for example. When you step back you realise that funds can make a real and positive impact and as funds lawyers, we play a part in that. This is just one aspect of multiple that genuinely interests me about the practice.

Any last words of advice you would like to give aspiring lawyers? 💡

Essentially, I believe that law is a fantastic career choice that opens many doors and offers opportunities beyond private practice. For instance, you might find roles in-house, with government organisations, or even in entirely different fields if you ultimately decide to do something different.

Starting your training at a commercial law firm and staying long enough to develop your skill set can set you up well for transitioning into various roles and exploring different career paths.

• Be open-minded about where your career might take you. Consider pursuing new roles and positions outside of traditional practice areas. Trying new things can reveal different opportunities and broaden your career prospects.

• Lastly, be authentic and true to yourself. The legal profession has become increasingly open to diverse talent. Embrace your unique qualities and play to your strengths. Using your individuality to your advantage can set you apart in the field. Never apologize for being you!