
Venture Capital & Private Equity Contracting
An International Perspective
Academic Press
Published in 2009
Book
Hardback
792 pages
978-0-12-198581-3 (ISBN)
Article exhausted; check for reprint
Description
Other books present corporate finance approaches to the VC/PE industry, but many key decisions require an understanding of the ways that law and economics work together. This book is better than straight corporate finance textbooks because it offers broad perspectives and principles that enable readers to deduce the economic implications of specific contract terms. This approach avoids the common pitfalls of implying that contractual terms apply equally to firms in any industry anywhere in the world.
Contents:
Part I. Introduction
1. Introduction and Overview
2. Agency Costs and Forms of Finance
Part II. Fund Structure and Governance
3. What Should Fund Managers Care About? Perspectives from Institutional Investors
4. Limited Partnership Agreements
5. Compensation Contracts
6. Fundraising and Regulation
7. Specialized Investment Mandates
8. The Role of Government and Alternative Policy Options
Part III. Financial Contracting between Funds and Entrepreneurs
9. The Investment Process
10. Security Design
11. Security Design and Adverse Selection
12. Corporate Venture Capital Fund Contracts
13. Preplanned Exits and Contract Design
Part IV. Investor Effort
14. Investor value-added
15. Do contracts affect effort?
16. Where to invest?
17. How many investee firms?
Part V. Divestment
18. The Divestment Process
19. Exit Outcomes
20. Contracts and Exits
21. Returns, Valuation and Disclosure
Part VI. Conclusion and Appendices
22. Summary and Concluding Remarks
Appendix 1: Sample Limited Partnership Fund Agreement
Appendix 2: Sample Term Sheet
Appendix 3: Sample Shareholder Agreement
Appendix 4: Sample Subscription Agreement
Contents:
Part I. Introduction
1. Introduction and Overview
2. Agency Costs and Forms of Finance
Part II. Fund Structure and Governance
3. What Should Fund Managers Care About? Perspectives from Institutional Investors
4. Limited Partnership Agreements
5. Compensation Contracts
6. Fundraising and Regulation
7. Specialized Investment Mandates
8. The Role of Government and Alternative Policy Options
Part III. Financial Contracting between Funds and Entrepreneurs
9. The Investment Process
10. Security Design
11. Security Design and Adverse Selection
12. Corporate Venture Capital Fund Contracts
13. Preplanned Exits and Contract Design
Part IV. Investor Effort
14. Investor value-added
15. Do contracts affect effort?
16. Where to invest?
17. How many investee firms?
Part V. Divestment
18. The Divestment Process
19. Exit Outcomes
20. Contracts and Exits
21. Returns, Valuation and Disclosure
Part VI. Conclusion and Appendices
22. Summary and Concluding Remarks
Appendix 1: Sample Limited Partnership Fund Agreement
Appendix 2: Sample Term Sheet
Appendix 3: Sample Shareholder Agreement
Appendix 4: Sample Subscription Agreement
Reviews / Votes
"The book covers many facets of venture capital and private equity contracting, from the birth of a venture capital fund to its exit, giving readers a complete and comprehensive picture about the venture capital and private equity industry."--Xuan Tian, Indiana UniversityMore details
Language
English
Place of publication
Oxford
United Kingdom
Target group
Upper-division undergraduates and graduate students studying financial and legal aspects of venture capital and private equity
Illustrations
Approx. 200 illustrations
ISBN-13
978-0-12-198581-3 (9780121985813)
Schweitzer Classification
Other editions
New editions

Douglas J. Cumming | Sofia A. Johan
Venture Capital and Private Equity Contracting
An International Perspective
Book
10/2018
2nd Edition
Elsevier
€68.19
The article will not be published
Persons
Douglas Cumming, B.Com. (Hons.) (McGill), M.A. (Queen's), J.D. (University of Toronto Faculty of Law), Ph.D. (Toronto), CFA, is an Associate Professor of Finance and Entrepreneurship and the Ontario Research Chair at the Schulich School of Business, York University. His research is primarily focused on law and finance, market surveillance, hedge funds, venture capital, private equity and IPOs. His work has been presented at the American Finance Association, the Western Finance Association, the European Finance Association, the American Law and Economics Association, the European Law and Economics Association, and other leading international conferences. His recent publications in have appeared in numerous journals including the American Law and Economics Review, Cambridge Journal of Economics, Economic Journal, European Economic Review, Financial Management, Journal of Business, Journal of Business Venturing, Journal of Corporate Finance, Oxford Economic Papers, and Review of Financial Studies. He was the recipient of the 2004 Ido Sarnat Award for the best paper published in the Journal of Banking and Finance for a paper on full and partial venture capital exits in Canada and the United States. He is a research associate with the Paolo Baffi Center for Central Banking and financial Regulation (Bocconi University), Groupe d'Economie Mondiale at Sciences Po (Paris), Capital Markets CRC (Sydney), Venture Capital Experts (New York), Cambridge University ESRC Center for Business Research, Center for Financial Studies (Frankfurt), Amsterdam Center for Research in International Finance, and the University of Calgary Van Horne Institute. He has also consulted for a variety of governmental and private organizations in Australasia, Europe and North America, and most recently is working with Wilshire Associates. Sofia Johan, LL.B (Liverpool), LL.M. in International Economic Law (Warwick), Ph.D. in Law (Tilburg), is the AFM Senior Research Fellow at the Tilburg Law and Economics Centre (TILEC) in The Netherlands. Her research is primarily focused on law and finance, market surveillance, hedge funds, venture capital, private equity and IPOs. Her work has been presented at the American Law and Economics Association, the European Law and Economics Association, the European Financial Management Association, and other leading international conferences. Her recent publications have appeared in numerous journals including the American Law and Economics Review, Journal of Banking and Finance, European Financial Management, European Economic Review, and Entrepreneurship Theory and Practice, among numerous other journals. Prior to her Ph.D., she was the head legal counsel at the largest government owned venture capital fund in Malaysia. She has also consulted for a variety of governmental and private organizations in Australasia and Europe.
Author
DeSantis Distinguished Professor of Finance and Entrepreneurship, College of Business, Florida Atlantic University - Boca Raton, FL, USA
Assistant Professor of Finance, College of Business, Florida Atlantic University - Boca Raton, FL, USA
Content
Part I. Introduction
Part II. Fund Structure and Governance
Part III. Financial Contracting between Funds and Entrepreneurs
Part IV. Investor Effort
Part V. Divestment
Part VI. Conclusion and Appendices
Part II. Fund Structure and Governance
Part III. Financial Contracting between Funds and Entrepreneurs
Part IV. Investor Effort
Part V. Divestment
Part VI. Conclusion and Appendices