In late February, the European private equity industry was given an opportunity to present its views to the European Union on the regulatory framework which should apply to it in the future. In front of an audience that included many strong supporters of the private equity model, industry participants and academics pointed out that private […]
The Chapter 11 filing of Lehman Brothers has caused companies around the world to re-assess their exposure (particularly counterparty risk) to other potentially troubled financial institutions.
The gloomy economic situation not only urges the furthering of China’s industrial upgrading and restructuring, but also the advancement of its banking industry. On January 20, 2009, the China Development Bank signed a contract for an acquisition loan with Zhongxin Guoan (Group) for RMB 1.63 billion (€176m). This was followed shortly by another two loan contracts […]
On 21 December 2007, Law 47/2007 amending the Spanish Securities Market Law (LMV) implementing the Directive on Markets in Financial Instruments 2004/39/EC (MiFID) came into force.
With the paralysis of the debt markets and uncertainty about how long and deep the economic downturn will be, and with the certainty that all these factors will likely affect business performance, some experts question the ability of private equity houses (PEHs) to do new deals in the current environment. It is, some would suggest, […]
The internationalisation of financial markets has grown considerably over the past decades, with increased cross-border capital flows, tighter links between financial markets, and a greater commercial presence of foreign financial entities around the world. As international capital markets became more integrated, companies started enjoying not only a tremendous amount of flexibility in deciding which type […]
In the late 1950s, President JF Kennedy said that ‘When written in Chinese, the word crisis (wÄ“ijÄ«) is composed of two characters: one represents danger, and the other represents opportunity.’
Private equity (PE) investors generally seek protection from dilution by other investors in later rounds. Anti-dilution protection is separate from the preferential subscription rights, which give priority to existing shareholders to subscribe for new shares in proportion to their interest in the company. Anti-dilution provisions retroactively reduce the price per share paid by the PE […]
Typically, venture capital (‘VC’™) investors expect to obtain an exit within a 3-7 year period and aim to receive a minimum return on their investments. Rights and mechanisms designed to allow the VC firms to protect their investment value, gain liquidity and maximise their returns need to be properly set out in the investment documentation.
Private equity (PE) investments will typically confer on the investor certain special rights to control in a certain way how transfers of shares in the target company may/will occur. The primary purpose of such provisions is to protect both the value and the liquidity of its investment in the event of any projected transaction involving […]