Venture Capital and Private Equity Contracting: An International Perspective Book

Preface ix

Part 1 Introduction 1

1 Introduction and Overview 3

2 Overview of Agency Theory 27

3 Overview of Institutional Contexts, Empirical Methods 51

Part 2 Fund Structure and Governance 67

4 What Should Fund Managers Care About? Perspectives from Institutional Investors 69

5 Limited Partnership Agreements 93

6 Compensation Contracts 129

7 Fundraising and Regulation 163

8 Specialized Investment Mandates 207

9 The Role of Government and Alternative Policy Options 241

Part 3 Financial Contracting between Funds and Entrepreneurs 281

10 The Investment Process 283

11 Security Design 297

12 Security Design and Adverse Selection 359

13 Corporate Venture Capital Fund Contracts 389

14 Preplanned Exits and Contract Design 409

Part 4 Investor Effort 449

15 Investor Value-added 451

16 Contracts and Effort 459

17 Home Bias 503

18 Portfolio Size 533

Part 5 Divestment 581

19 The Divestment Process 583

20 Exit Outcomes 599

21 Contracts and Exits 649

22 Valuation, Returns, and Disclosure 699

Part 6 Conclusion 721

23 Summary and Concluding Remarks 723

Online Appendices (venturecapitalprivateequitycontracting.com) 727

References 729

Index 755