In the world of private equity and venture capital, few appointments carry as much weight as the hiring of a general counsel. Too often, the role is misunderstood as a technical necessity, a lawyer tasked with managing contracts, overseeing compliance and coordinating external advisers. In reality, the right GC can transform how a fund manages risk, scales its operations and engages with regulators, portfolio companies and investors. At a time of fierce competition and heightened scrutiny, this is a strategic hire whose impact extends well beyond the legal function.
The days when a GC could be confined to the role of legal technician are long gone. Modern funds require a lawyer who combines technical legal expertise with commercial judgement, serving as a genuine business partner to deal teams, senior management and portfolio leadership. They must be able to translate risk into actionable business decisions, not merely flagging problems but contextualising them in line with the fund’s strategy and appetite for risk. A commercially minded outlook is essential: can the GC think like an investor, grasp deal dynamics, and understand the pressures of fundraising and portfolio growth? Cross-border experience is equally valuable in an industry where global operations are the norm, and stakeholder management is vital, with GCs expected to inspire confidence among regulators, limited partners, boards and senior executives alike.
Agility also defines success. Private equity and venture capital funds move quickly, and their portfolio companies often evolve at breakneck pace. The GC must be comfortable operating in ambiguous, high-growth environments, sometimes as the sole legal adviser, and be capable of leading and building a function when the time comes. Above all, they need to demonstrate leadership, offering both steadiness and vision as the business scales.
The influence of a strong GC is felt across the life of the fund. In fundraising, they shape documentation, negotiate LP agreements and ensure regulatory compliance in investor materials. They provide vital portfolio support, advising companies on governance, financing rounds and risk management. They are often the architects of regulatory strategy, anticipating changes in regimes from the SEC to the FCA and preparing the fund to adapt. And they help to embed a culture of governance that enhances credibility with investors without strangling entrepreneurial ambition. In short, the GC is not a cost centre but an enabler of growth, resilience and investor confidence—a hire that can materially influence returns.
For portfolio companies themselves, the timing and quality of the first GC appointment can prove decisive. Many founders initially rely on external counsel or part-time advisers, which may suffice in the early stages of growth. But as headcount expands, international operations begin, regulatory exposure increases and fundraising rounds multiply, the legal challenges become too complex and too central to be outsourced. A dedicated GC becomes not just a risk manager but a business enabler, capable of anticipating problems before they erupt, structuring deals to preserve long-term value, and creating frameworks that allow rapid expansion without spiralling exposure.
The best GCs in high-growth businesses operate as strategic partners, not gatekeepers. They enable international expansion by navigating employment law, data protection and consumer regulation; they build trust with investors by serving as reliable points of contact on governance and risk; they balance ambition with caution, ensuring bold decisions are underpinned by sound legal frameworks; and they shape company culture by instilling compliance practices that support, rather than stifle, growth.
The risks of misjudging the appointment are significant. Hiring too late, or opting for someone too junior or narrowly specialised, can leave a company exposed. In regulated sectors such as fintech, healthtech or consumer finance, the costs of legal missteps can be catastrophic, from fines and reputational damage to the loss of a licence. A poorly chosen GC can also fail to win the trust of investors and senior stakeholders, undermining their influence at precisely the moment it is most needed.
Ultimately, for both funds and their portfolio companies, the general counsel is a pivotal appointment. The right individual will stand not at the margins of the business but at its core, partnering with the CEO, board and investors to build the governance and legal infrastructure on which lasting success depends. Far from being a technical necessity, the GC is one of the most consequential hires an investor-backed business will ever make.
