Venture Capital and Private Equity Contracting

Chapter 4. What Should Fund Managers Care About? Perspectives from Institutional Investors

4.1. Introduction and Learning Objectives

Part II consists of Chapters 4 to 9 and considers the structure and governance of venture capital and private equity funds. Limited partnerships are the most common form of fund structure worldwide and therefore are the focus in Chapters 4 to 8. Chapter 9 considers the role of government policy in stimulating venture capital and private equity activity.

A limited partnership is essentially a contractual arrangement between a group of partners whereby one partner agrees to take on full liability in return for almost full control over the business of the partnership. Unlike the customary partnership, all other partners ...