Process

Question 1

1. LP Investors

Answer 1

• Limited Liability
• Commitment
• Management Fees
• Carried Interest
• Superior Returns

Question 2

2. PE/VC Fund
   General Partners
   Private Placement Memorandum

Answer 2

Sector, Stage and Geography

Track Record
Deal Flow
Execution
Terms

Question 3

3. Investee Company
   VC/MBO
   Business Plan

Answer 3

• Leads into evaluation of investment proposition
• Internal/initial due diligence

Product/service
Market
Business Model
Management

Question 4

4. Offer Letter
   Terms

Answer 4

Valuation
Equity Stake

Leads to external due diligence

Do deal
Fix issue
Amend terms
Abort deal

Question 5

5. Shareholder / Investment Agreement

Answer 5

Cash for equity

Leads to Monitoring and Adding value
Look for danger signs

Question 6

6. Exit

Answer 6

Trade Sale
IPO
Secondary Sale