Assignment 15. 2000-2001
XYZ Private Equity Fund / Venture Capital
CEO, Limited Partner
Create a venture-capital fund for an investment bank
The client wanted, like so many others, to earn from the New Economy. It set up a fund in the form of a limited partnership with a management company at its head. The fund was tax-advantaged for private investors (high net-worth individuals) so that dividends would be income-tax free even under German law at the time. The client assumed 10% of the fund and acquired the remaining investors. The fund concluded exclusive cooperation agreements with internationally prominent research institutes to locate suitable targets for investment (seed und growth up to IPO). It only approached companies whose investment managers thoroughly understood their respective business model based on their own business experience.