Process Flashcards

1
Q
  1. LP Investors
A
  • Limited Liability
  • Commitment
  • Management Fees
  • Carried Interest
  • Superior Returns
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2
Q
  1. PE/VC Fund
    General Partners
    Private Placement Memorandum
A

Sector, Stage and Geography

Track Record
Deal Flow
Execution
Terms

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3
Q
  1. Investee Company
    VC/MBO
    Business Plan
A
  • Leads into evaluation of investment proposition
  • Internal/initial due diligence

Product/service
Market
Business Model
Management

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4
Q
  1. Offer Letter
    Terms
A

Valuation
Equity Stake

Leads to external due diligence

Do deal
Fix issue
Amend terms
Abort deal

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5
Q
  1. Shareholder / Investment Agreement
A

Cash for equity

Leads to Monitoring and Adding value
Look for danger signs

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6
Q
  1. Exit
A

Trade Sale
IPO
Secondary Sale

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