Blog: VLP Speaks

Unlocking Secrets: How to Build a Rock-Solid Legal Team for Your Investments – A Blog Post by David Goldenberg

Posted on May 19, 2025 in New and Emerging Companies, Blog by David Goldenberg

A discussion of how investors and family offices can build out their legal team for investing.

Building a rock-solid legal team for your investments is no small feat. Wealthy individuals and family offices are often involved in dozens of investments in private entities such as pre-IPO companies and venture capital and private equity funds.  For those involved in this world, you understand the complexities and nuances involved in managing these investments. It’s essential to have legal experts who can navigate through the labyrinth of regulatory requirements, contract negotiations, and potential disputes. This article will explore key strategies to assemble a top-notch legal team.

Understanding the Fundamental Roles in a Legal Team

Before delving into examples, it’s important to understand the basic components of a legal team. Your legal team should ideally consist of diverse roles that cater to the varied legal aspects of investment management:

1. General Counsel (GC): Consider this role the lynchpin of your legal framework—a strategic advisor who oversees the broader legal landscape of your investments.
2. Specialized Lawyers: Depending on your investment portfolio, you may need specialists in areas such as tax law, contract law, environmental law, or intellectual property law.
3. Compliance Officers: These professionals ensure all your investment activities adhere to both internal policies and external regulations.

Learning from the Titans: Real-World Inspiration

Example 1: Warren Buffett and Berkshire Hathaway

Warren Buffett’s approach to building a competent legal framework at Berkshire Hathaway is both methodical and strategic. Rather than a massive legal department, Buffett relies on a small, elite team of seasoned legal professionals who possess deep expertise in specific areas. This structure prioritizes quality over quantity, ensuring that each legal decision is made by someone who understands not only the law but also Buffett’s unique investment philosophy.

Step-by-Step Guide to Assembling Your Legal Team

Step 1: Define Your Legal Needs

Start by conducting a comprehensive assessment of your current and anticipated legal requirements. Do your investments include industries that demand specialized legal knowledge, such as pharmaceuticals or technology? A clear understanding of your investment universe will guide the structuring of your legal team.

Step 2: Create a Plan to Build the Team

Whether you bring someone in house or use outside legal counsel will depend on the size and complexity of your needs.  For employee positions, recruitment is a crucial component when forming a dependable legal team. Often the best person for the job will not be looking.  If you want to bring someone on board, utilizing an industry-specific recruiter who specializes in legal placements is the best approach.  If you are just starting out, outsourcing may be the best approach.

Step 3: Prioritize Cultural Fit and Shared Values

Legal acumen aside, your team should share the core values and ethos of your family office. These shared values will ensure that the legal advice provided is aligned with your broader business strategies.

Step 4: Implement a Continuous Learning and Development Program

The legal landscape is ever-evolving—hence, your legal team must stay abreast of the latest developments. Encourage continuous education through workshops, seminars, and certification programs to keep your team ahead of the curve.

Navigating Potential Pitfalls

Balancing Cost and Competence

Striking the right balance between cost and competence is critical. While it may be tempting to cut corners on legal expenses, remember that the right legal expertise can prevent costly disputes or compliance issues down the line.  Given the highly specialized nature of legal services, most will choose to outsource some if not all of these needs.

Evaluating Success

Regular evaluation and realignment of your legal team’s competencies and outcomes are vital. Use performance metrics to assess both individual and team achievements. This could include tracking success rates in negotiations, compliance adherence, speed to close and dispute resolutions.

Conclusion: The Road Ahead

A formidable legal team is the backbone of any successful investment strategy. With the right mix of expertise, cultural fit, and proactive planning, you can create a legal team that minimizes the risks involved in your investment strategy without creating undue burdens on the rest of your investment team. As seen with industry leaders like Berkshire Hathaway, a rock-solid legal team not only protects your investments but propels you toward enduring success.

Immersing your legal team in your investment philosophy ensures their advice does more than mitigate risks—it becomes a catalyst for growth and innovation.  With these strategies in mind, your family office will be well-positioned to navigate and thrive in the complexities of private company investments.

VLP offers tailored investor representation.  For tailored advice or a consultation, don’t hesitate to reach out.