Debevoise’s tax lawyers play a critical role in nearly every stage of a private equity fund transaction (including not only fund formation, but buyside work, secondary transactions and investments in private equity firms). On the fund formation side, they help structure funds (often including entities such as parallel funds, feeder funds, co-investment vehicles and blocker corporations) to be tax efficient for investors in a wide variety of tax categories (including U.S. and non-U.S. tax exempt entities, U.S. state and local governmental entities, sovereign wealth investors and individuals); devise and draft the economic provisions implementing the fund’s business terms (such as the distribution waterfall, general partner clawback and all partner payback) that can range from elegantly simple to highly complex, depending on the client’s goals; and design and advise sponsors on tax aspects of fees and incentive arrangements, including carried interest, management fees and employee benefits, and investment of sponsor capital in the funds. Debevoise’s tax lawyers take an active “hands-on” approach and work closely with the fund formation teams to achieve a seamless product for the firm’s clients. They seek to combine technical expertise, market knowledge and creativity with a commercial practicality that takes each client’s particular position and needs into account.