Alternative investment vehicle (AIV) clauses in US partnership agreements grant GPs the flexibility to create the most tax efficient entity for an acquisition, but those entities do court their own risks.
Millennium Technology Ventures brings on a new CFO as part of a dramatic expansion plan
Financial services PR giant Kekst has merged with advertising firm Publicis
Due diligence and risk management prior to a deal has become more important, as recent LBO lawsuits demonstrate.
Value-based due diligence evaluates the target's projected run-rate earnings and free cash flow and related key assumptions that are driving the value of the transaction.
Proper due diligence of pension liabilities around the world starts with acknowledging seven key facts.
Enforcing the US Foreign Corrupt Practices Act (FCPA) remains a priority for several US regulatory bodies. Given the breadth of its reach, and the stiff penalties for infractions, private equity firms should know the details of the act, and any deal's potential for violating the law.
Vincent Pluvinage, who leads the private equity practice at intellectual property specialist firm Intellectual Ventures, argues that too many private equity GPs fail to fully unlock the potential of their portfolio companies' IP.
Private equity firms frequently use background investigators in emerging markets. These risk consultants need more than just local contacts to be effective.
While most firms still have individual GPs monitor the health of portfolio companies, increasingly this is becoming a firm-wide, systematized function.