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Private Equity and Venture Capital in Europe
book

Private Equity and Venture Capital in Europe

by Stefano Caselli
November 2009
Beginner content levelBeginner
368 pages
11h 24m
English
Elsevier Science
Content preview from Private Equity and Venture Capital in Europe

9.2. The Contractual Package

The “contractual package” defines the commitment of the equity investor to the venture-backed company. It impacts and sustains value creation and allocates duties and rights between the equity fund and the venture-backed company.

The contract facilitates management and control and identifies the proper combination between risk and return. Contract design is developed through three different approaches:

  • Targeting
  • Liability profile
  • Engagement

Each approach is broken down in Figure 9.5.

Figure 9.5. The contractual package.

The first approach is by targeting an investment vehicle; the valuation of the alternative ...

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Publisher Resources

ISBN: 9780123750266