DUBLIN, Ireland, Oct. 11 /PRNewswire/ -- Research and Markets
(http://www.researchandmarkets.com) has announced the addition of 2004-2005
Private Equity/Venture Capital Terms & Conditions Survey to their offering.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040820/RESEARCH )
Private equity is an asset class that offers potential high returns,
somewhat higher risk and diversification from a traditional portfolio of
marketable securities. In recognition of these potential benefits, many
pension and other funds have adopted investment policies that contemplate an
allocation to private equity.
Public and private fund investments have driven a significant amount of
the evolution that has occurred in private equity. The range, size and
complexity of offerings as well as the number of investors and partnerships
have expanded considerably.
While the investment merit, reputation and capabilities of general
partners are of paramount importance in the decision-making process, private
equity contracts have also evolved to become complex agreements and require
considerably more attention.
In recognition of the increased complexity in private equity contracts,
Houlihan Lokey Howard & Zukin and Thomson Venture Economics have undertaken a
survey regarding the best practice and standard operating procedures in five
key areas:
- Fund Formation and Operation
- Fees and Expenses
- Distribution and Profit Sharing
- Performance Returns
- Corporate Governance of Funds and Portfolio Companies
This survey addresses these topics and is intended to help private equity
investors and managers develop best practices to improve the efficiency of
private equity investing. In particular, this study provides:
- Information regarding contractual terms and issues that impact
financial and ongoing management of partnerships
- Items for consideration when negotiating specific contractual terms.
Our analysis focuses on contractual terms that affect the management of
the partnership.
Executive summary
I fund formation and operation
Fund size and number of lps
Term and investment period
Reinvestment of fund capital
Bridge financing
Oversubscription policy
Admitting new lps, duration of fund raising and timing of successive funds
Use of placement agents
General partner contribution
General partner co-investment rights
Limited partner co-investment rights
Ubti-unrelated business taxable income
Time limit on capital calls 16
Defaulting lps and secondary sales
Ii fees and expenses
Management fees
Transaction fees
Transaction costs: broken deal expenses
Transaction fees: structure of director fees (cash and non-cash)
Organizational expenses of the fund
Iii distribution and profit sharing
Carried interest calculation
Aggregation of profits
Allocation of profits and distribution of proceeds: clawback
Preferred return/hurdle rates
Gp clawback
Fund distribution of capital
Iv performance returns
Comparison of performance return methodologies
V corporate governance and key managerial terms
Advisory boards
Standard of negligence and indemnification provisions
Divorce & key-man clause
Vi corporate governance of portfolio companies
For more information visit http://www.researchandmarkets.com/reports/c7131
Laura Wood
Senior Manager
Research and Markets
press@researchandmarkets.com
Fax: +353 1 4100 980
SOURCE Research and Markets
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Related links:
http://www.researchandmarkets.com
http://www.researchandmarkets.com/reports/c7131
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20040820/RESEARCH
CONTACT:
Laura Wood, Senior Manager, Research and
Markets, press@researchandmarkets.com, Fax: +353 1 4100 980
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