As businesses grow, so do their legal needs. However, not all companies are ready or able to employ a full-time Chief Legal Officer (CLO). A flexible alternative is emerging in the form of fractional CLOs—experienced legal professionals who serve part-time, offering on-demand expertise without the financial commitment of a full-time hire. Here at LPJ Legal, we offer fractional CLO services to provide affordable, comprehensive, and specialized legal counsel to our clientele, including those in business, real estate, and construction. To schedule a consultation, visit the LPJ Legal website, or call us today at 202-643-6211.
What is a Fractional CLO?
A Fractional Chief Legal Officer refers to an arrangement where a business hires an attorney on a contractual basis to guide them in the event that they need legal counsel. Think of it as a consulting arrangement: the business (the client) pays a retainer to have access to the high-level legal expertise of the attorney (the consultant).
Other terms for this arrangement include Part-Time CLO, Outsourced General Counsel, or Fractional Legal Executive.
In What Areas can a Fractional CLO provide guidance with?
A fractional CLO provides high-level legal counsel in a myriad of areas. When hiring your CLO, ensure that they are capable of providing leadership in the areas of your business that you most need assistance. Here are a few examples of areas that LPJ Legal Fractional CLOs are able to provide guidance in:
- Compliance
- Policy and Regulatory Matters
- Risk Management
- Mergers & Acquisitions
- Employment and Labor Law Compliance
- Corporate Structuring & Tax Strategy
- Exit Strategies
- Corporate Governance
- Creating and Reviewing Contracts and Agreements
What are the Pros of hiring a Fractional CLO?
- Cost Efficiency – The number one benefit to hiring a Fractional CLO is affordability. LPJ Legal’s Fractional CLO services provide high-level legal expertise at a fraction of the cost of employing a full-time executive. Due to the nature of the Fractional CLO agreement, businesses only pay for the time and services that they need, making it an affordable solution for companies with limited budgets.
- Flexibility – Due to the contractual nature of a Fractional CLO agreement, these attorneys provide a level of flexibility, allowing companies to scale their legal support based on their current needs. Because a Fractional CLO is available on retainer, a company is able to request additional guidance more often during large projects, or if compliance issues arise.
- Access – If you are a small business, or a growing company, you know that hiring a legal team can be a massive expense. Hiring a fractional CLO like LPJ Legal provides your company with seasoned, strategic-level oversight to guide complex decisions, providing peace of mind and more streamlined growth.
Not sure if you need a Fractional CLO? Here’s how they could benefit your company:
1. Real Estate Investment Trusts (REITs)
Why REITs Need a Fractional CLO: For real estate investment trusts, legal compliance and risk management are critical. Real estate transactions are highly regulated, and REITs need to ensure they meet regulatory requirements, manage investor relations, and structure deals efficiently. A fractional CLO helps oversee these complex transactions, providing valuable insights without a long-term commitment.
Example of Value Added: A fractional CLO can guide a REIT in structuring its acquisitions to maximize tax efficiency, advise on real estate contracts, and help maintain compliance with the SEC. This support can improve deal structure, reduce risk exposure, and enhance investor confidence, all of which contribute to the REIT’s long-term success.
2. Construction Companies
Why Construction Companies Need a Fractional CLO: In construction, each project involves unique legal considerations, from contract negotiations to regulatory compliance. These companies face ever-changing labor laws, environmental regulations, and contract disputes, and any misstep could lead to costly litigation or project delays. A fractional CLO provides targeted legal expertise as needed, helping construction companies to streamline operations and mitigate legal risks.
Example of Value Added: A construction company undertaking a large-scale project can rely on a fractional CLO to manage contracts with subcontractors, ensure compliance with zoning laws, and oversee environmental permits. By bringing in expert guidance only when needed, construction companies can improve project timelines and control legal costs.
3. Startups
Why Startups Need a Fractional CLO: Startups operate in dynamic environments where legal considerations—from corporate structuring to contracts with investors—can have a significant impact on growth and viability. Many startups lack the resources for a full-time legal officer but still need strategic legal guidance to set a solid foundation. A fractional CLO is an ideal solution, providing essential legal support tailored to a startup’s growth stage.
Example of Value Added: A startup looking to secure Series A funding can engage a fractional CLO to help structure the investment round, draft investor agreements, and ensure compliance with SEC regulations. With a fractional CLO, the startup gains the benefits of top-tier legal counsel while preserving capital for other growth initiatives.
4. Companies in Transition
Why Transitioning Companies Need a Fractional CLO: Companies undergoing major transitions—such as mergers, acquisitions, or leadership changes—often face increased legal needs. These situations require expert oversight to ensure smooth transitions and mitigate risks. A fractional CLO offers targeted support, ensuring that all legal aspects of the transition are handled effectively.
Example of Value Added: When a mid-sized company prepares for a merger, a fractional CLO can handle due diligence, advise on the terms of the merger agreement, and help integrate policies post-merger. This guidance is crucial to ensure a smooth, compliant transition without the commitment of a full-time executive role.
Hiring LPJ Legal for your Fractional CLO Needs
At LPJ Legal, our experienced business lawyers have more than a decade of experience helping businesses navigate complex legal matters. For companies across various industries, contracting LPJ Legal as your fractional CLO can be a game-changer. By providing strategic legal expertise only as needed, we offer cost-effective, high-level guidance to keep your company compliant, mitigate risks, and enable smoother growth. For businesses that need tailored legal advice without a full-time commitment, hiring LPJ Legal is a smart, flexible choice that empowers them to navigate your legal complexities confidently. To schedule a consultation, visit the LPJ Legal website, or call us today at 202-643-6211.
