equity sponsor

equity sponsor
USA
Also know as a sponsor.
Typically the manager or general partner of a private equity or venture capital investment fund. The sponsor is typically run by one or more private equity or venture capital investment professionals who are responsible for:
• Forming the investment fund (typically a limited partnership or a limited liability company).
• Organizing and promoting capital raising for the fund (typically from insurance and bank holding companies, university endowments, employee benefit plans and wealthy individuals).
• Identifying and executing investment opportunities, including leveraged buyouts and venture capital investments.
• Managing portfolio companies (portfolio company) following an investment, including exiting such investments to realize a return on investment for the fund.
The sponsor receives a management fee from the fund (typically 2% of committed capital) to pay for the costs of managing the fund and shares in any profits of the fund (typically 20% of net profits) as compensation for, and an incentive to improve, fund performance.
For more on the types of investments typically made by sponsors and their investment funds, see Practice Note, Buyouts: Overview () and Practice Note, Minority Investments: Overview ().
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • sponsor — spon·sor n 1: a legislator who introduces and supports a legislative proposal (as a bill or amendment) 2: a person who assumes responsibility for some other person (as an immigrant) or thing 3 a: one that securitizes assets b: one that promotes,… …   Law dictionary

  • equity cure right — USA A provision that may be agreed to in certain loan agreements that permits the financial sponsor (or a parent company) to transfer cash to the borrower (generally within 10 days after delivery of financial statements) to increase the amount of …   Law dictionary

  • equity investor — USA A party that invests in an entity to receive equity securities (such as common or preferred stock) of that entity. Related terms sponsor Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Equity co-investment — An equity co investment (or co investment) is a minority investment, made directly into an operating company, alongside a financial sponsor or other private equity investor, in a leveraged buyout, recapitalization or growth capital transaction.… …   Wikipedia

  • Sponsor (commercial) — Corporate logos showing NASCAR team sponsors. To sponsor something is to support an event, activity, person, or organization financially or through the provision of products or services. A sponsor is the individual or group that provides the… …   Wikipedia

  • Financial sponsor — A financial sponsor is a term commonly used to refer to private equity investment firms, particularly those private equity firms that engage in leveraged buyout or LBO transactions. [ [http://www.abanet.org/buslaw/blt/2008 01 02/blomberg.shtml… …   Wikipedia

  • Private equity — In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. There is a wide array of types and styles of private equity and the term private equity has… …   Wikipedia

  • Private equity firm — A private equity firm is an investment manager that makes investments in the private equity, i.e. an equity security class that are not publicly traded, of operating companies through a variety of loosely affiliated investment strategies… …   Wikipedia

  • History of private equity and venture capital — The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub… …   Wikipedia

  • Private equity in the 21st century — relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub industries, leveraged buyouts and venture capital experienced growth along parallel although… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”