Key considerations for a GC’s first hire in a PE-backed business
As the first General Counsel (GC) in a private equity (PE)-backed business, one of the most critical decisions you will face is who to hire for your in-house legal team. With multiple competing priorities, including commercial demands, rapid growth and investor expectations, it can be challenging to know where to begin. Choosing how to build your in-house legal team from scratch will have a profound impact on your ability to remain strategic, rather than reactive, in your role.
Options for the First Hire
Junior to Mid-Level Lawyer
A lawyer with a few years of experience can provide solid legal support, handling everyday tasks such as contract drafting, compliance issues, and legal research. This hire may be a good option if you need someone to manage the general legal workload while you focus on higher-level matters. However, depending on your business needs, a junior lawyer may require significant mentoring and oversight to be effective.
Paralegal
A paralegal can support with administrative tasks, document management, and contract organisation. This option is particularly useful if your workload involves a high volume of documents that need processing or if you require assistance in managing a growing pipeline of contracts. Paralegals, however, lack the legal training necessary to handle complex legal matters.
Download the guide: How to hire an in-house paralegal
Contract Manager
If contract negotiations and management are central to your business, hiring a contract manager may be a wise choice. A contract manager can oversee the drafting, negotiation, and execution of contracts, reducing your workload and allowing you to focus on higher-value legal matters. However, while they can manage the process, they may not be equipped to handle broader legal issues beyond contracts.
Legal Operations
As legal functions grow, the demand for efficiency increases. A legal operations professional can help streamline processes, implement best practices and establish workflows that enhance the overall effectiveness of the legal department. This hire is particularly beneficial if your business is experiencing rapid growth and scaling the legal function efficiently is a priority.
Legal EA/PA
For those who need support with scheduling, coordinating legal matters, and handling day-to-day administrative tasks, hiring a legal EA/PA can greatly improve your effectiveness. This role frees you from routine organisational tasks, allowing you to focus on higher-priority legal matters. However, this hire will not be involved in actual legal work, so it is best suited for administrative support rather than strategic legal input.
Flexible interim resource
If you are unsure of the long-term needs of your legal function or are in a period of transition, hiring an interim for your in-house legal team can provide immediate support. This option offers flexibility while you assess your longer-term hiring needs. However, the downside is that interim resources may not provide the continuity and growth potential of a permanent team member.
Key Considerations for Your First Hire
While each of these options offers distinct advantages, there are key factors to consider when deciding which one will provide the most value to your business.
Where Can You Add the Most Value?
As the GC, you must prioritise where your time and expertise will make the biggest impact. Consider what tasks are consuming your time but don’t necessarily require your legal expertise. Are you spending too much time on administrative work, contract execution or routine legal tasks? The goal is to hire someone who can free you up to focus on high-impact work, such as negotiating key deals, managing significant risks or liaising with investors.
What Are Your Immediate Priorities?
What are the most pressing needs in your legal department? Do you need someone to help with the execution of contracts, handle day-to-day legal tasks, or establish operational processes? If you have an immediate need for administrative support, an EA/PA or paralegal may be suitable. However, if you require someone who can help you manage legal workflows and scale your function, a contract manager or legal operations professional may be the better choice. Consider the trade-offs between short-term support and long-term scalability when making your decision.
What Will Drive Long-Term Success?
It is important to think about the future growth of your legal function. Will your first hire be able to grow and evolve with the company? Will they help build a scalable legal function that can adapt to the company’s changing needs? Hiring someone who can take on more responsibility over time can provide the flexibility to scale your department without creating bottlenecks. Conversely, hiring too narrowly can solve immediate challenges but may hinder the team’s ability to grow in the future.
Choosing the right first hire as a GC in a PE-backed business is a crucial decision that will shape your legal function’s ability to support the company’s growth. By carefully considering the immediate needs of your business, where you can add the most value and the long-term vision for your legal team, you can make an informed decision that sets you up for success.
