search query: @author Wahrenburg, M. / total: 2
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| Author: | Feinendegen, S. Schmidt, D. Wahrenburg, M. |
| Title: | Die Vertragsbeziehung zwischen Investoren und europäischen Venture Capital-Fonds: eine empirische Untersuchung und Klassifizierung unterschiedlicher Vertragsmuster |
| Journal: | Zeitschrift für Betriebswirtschaft
2003 : NOV, VOL. 73:11, p. 1167-1195 |
| Index terms: | Venture capital Investors Contracts |
| Language: | ger |
| Abstract: | This paper studies the contract design used between investors and European venture capital funds. It is focused on the analysis of the fund management's compensation as well as the use of covenants. Both are important contract elements to overcome the inherent agency problems between the investors as principal and the fund managers as agents. We empirically examine 122 private placement memoranda as well as 46 partnership agreements of European venture capital funds with vintage years from 1996 to the end of 2001. The detailed analysis of the applied contract design shows a very heterogeneous use of covenants and compensation terms. The clustering of the contracts, however, is possible and leads to two homogeneous groups of contract designs which show a similar use of contract elements. We can show that funds of an anglo-saxon background as well as non-debut funds managed by well established venture capital companies apply covenants and compensation terms quite differently from Continental-European or first-time funds. Additionally, we can see an increasing number of covenants used in the contracts over time and thereby an increasing complexity of the applied contracts (original in German). |
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