How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience?

Economic instability or times of crisis have an enormous impact on the private equity industry. To bridge such cycles without damage, is the general counsel’s strategic role. Aspects such as risk management; prompt communication of upcoming changes and proposed solutions and flexibility play a decisive role for me. Changes in the market require creative solutions. It is important to develop and implement new concepts across the various teams, including the investment team, fund management and the back-office functions. Ensuring resilience, as a general counsel I have both a guiding and a mediating function. My legal strategy contains both, the down-side protection against possible risks for the portfolio as well as a solution-oriented approach with strong stakeholder involvement and transparent communication to the managing partners.

How do you measure the impact of ESG initiatives on the company’s overall performance and reputation?

ESG plays an immense role at the financial sponsor level. On the one hand, the company’s active ESG awareness leads to improved risk management and a reduction of various risks. On the other hand, the ESG-based approach of corporate governance enables value creation and thus increases the company value. Both aspects are decisive for the company’s performance and success.

Stakeholder-Feedback and ESG-reporting are the most relevant measurement criteria in the private equity industry. By assessing the Principle Adverse Impact throughout the entire portfolio we can generate a good overview on the ESG-footprint and the development over the years. During the M&A process ESG Due Diligence is also carried out on the particular company level showing the material ESG-related areas for improvement.

What do you see as the major legal challenges for businesses in Germany over the next five years, and how are you preparing to address them?

Increasing economic protectionism and the associated regulatory density are making economic conditions in Germany more difficult. Additionally, the generational change and the lack of succession planning in the German SME sector will play a major role in the next years. Therefore, the legal departments will have to be much more proactive in identifying regulatory changes in order to develop solutions in time. Capacity and profitability will be decisive factors here. In the context of succession issues, legal departments must also seek dialog with decision-makers in good time to be able to offer sustainable solutions. This is where the mediating and diplomatic skills of general counsels will be particularly in demand.