Ilya has more than 15 years of experience in finance, credit, equity and derivatives trading, algorithmic, banking and stock market software development.
Recommendations
Explanation Generally, factors affecting a portfolio company's workforce, customers, suppliers and communities should be evaluated at the board level. Social factors may include stakeholder dialogue and human rights issues, such as compliance with core labour standards in areas such as health and safety, child labour, illegal or forced
Recommendations
Explanation In general, GPs should support a prudent and sustainable approach to environmental risks and opportunities that may affect their portfolio companies. Such risks could relate to a range of factors including resource use/consumption, water scarcity, waste production and disposal; emissions in air, land and water; energy use, carbon
Recommendations
Explanation In most jurisdictions, there are legal obligations regarding the information that must be provided to stakeholders of portfolio companies. However, it is common practice for funds investing in portfolio companies to request more frequent and detailed information than is required by law. In particular, GP may require more frequent
Recommendations
Explanation In certain circumstances, LP co-investors of the fund or other third parties with whom GP is in some way connected may wish to invest directly in a company in which GP proposes to invest on behalf of the fund. If a co-investment is more successful than the fund as
Recommendations
Explanation At the time of investment by a fund, the investment decision is typically made in support of a specific strategy, business plan and management team. Often, during the negotiation process leading up to the investment by the fund, GP has had significant input into determining the target company'
Recommendations
Explanation There are a number of different ways in which GP can ensure that the fund can influence a portfolio company. Which is appropriate will depend on a number of factors (including the size of the Fund's investment and the degree of influence that GP considers appropriate). If
Recommendations
Explanation There will be a variety of documents that are created during the process of an investment, such as shareholder and investor rights agreements, partnership agreements and loan agreements. These are collectively referred to in this guide as Investment Agreement. The content of these documents will be influenced by many
Recommendations
Explanation It is important that the major shareholders agree on a common strategy for realising the investment before making it. It will not always be possible to realise this strategy, for example if the investment does not perform and/or buyers do not come forward, but it is desirable to
Recommendations
Explanation Depending on the size of the investment, GP will typically appoint one or more experienced members of its own staff or representatives to the portfolio company's board. The individuals appointed by GP typically have deep experience in the industry and often have been involved in the initial
Recommendations
Explanation Some portfolio company information will be confidential; the GP should be aware of this, as well as the need to treat company information with due regard to commercial sensitivity and the requirements of the portfolio company's other stakeholders. Recommendation The GP must not disclose information received from
Funds
Explanation If the fund permits the GP, its associates or officers to co-invest or to make parallel investments alongside the fund, there is a potential of creation a conflict of interest for the GP. Recommendation Subject to the provisions of the fund documents, details of co-investment arrangements should be disclosed
Recommendations
Explanation In some jurisdictions, it is common industry practice for different classes of investors to acquire different types of securities, depending on their relative position in the transaction, the type and amount of risk they assume, and the relative value they bring to the investment. Returns for each type of
Recommendations
Explanation Investments made by fund can be structured in many ways. In some cases, the fund may be a passive minority investor in a portfolio company, while in other cases, the fund may gain substantial or even complete control of the portfolio company. In deciding how to structure investments, consideration
Recommendations
Explanation A GP should be aware of the risks and opportunities that ESG factors bring to its portfolio companies. The success of an investment may be influenced not only by financial performance but also by other performance criteria. A GP must also take into account its own LPs' approaches
Малый Альтернативный Фонд (AIF) в Эстонии. В статье подробно рассмотрены преимущества фонда, структура фонда, основные этапы регистрации, ограничения и исключения Малого Альтернативного Фонда в Эстонии.
Recommendations
Explanation The due diligence process that the GP conducts prior to investing in a portfolio company is critical. The information obtained during the process, together with GP's own knowledge and expertise, forms the basis for any investment decision. The due diligence process examines a broad range of aspects