Venture Capital and Private Equity Investment

Transcript:Venture Capital and Private Equity Investment:
Venture Capital and Private Equity Investment Models in CMB Regulations Venture Capital and Private Equity Concepts in CMB Regulations Investment Company Model Scope of Activities and Types of Models Establishment Conversion to an Investment Company Sale of Shares and Public Offering Portfolio Limitations Portfolio Management and Performance Fee Fund Model Scope of Activities and Features of the Model Establishment Issue and Sale of Units Portfolio Management and Performance Fee Tax Regulations 2 No specific distinction between “private equity” and “venture capital” concepts according to CMB regulations. Both terms can be used interchangeably. These concepts are defined to cover both private equity and venture capital investments, respectively. Definition of Venture Company in CMB Regulations: 3 Companies (joint stock companies and limited companies) established and operating or to be established in Turkey, carrying a growth potential and in need of resources Venture Company: - private companies - publicly held companies (non-traded shares) Venture Company ( portfolio company) concept in CMB Regulations 4 Private Equity and Venture Capital Investments Mezzanine Finance Venture Capital Investment Company (VCIC) Model 5 6 VCIC Activities Public offering model At least 25% of outstanding shares of VCIC shall be sold through public offering and be listed on stock exchange Private offering Sales to qualified investors 7 VCIC TYPES: In terms of public and private offering Qualified Investors : Financial institutions, public administrations and entities, natural persons and legal entities who have individual net worth that exceeds TRY 1 milion and natural persons holding angel investor license. Registered capital Min. paid in/issued capital TRY 20 million (approx. $ 9,25 million) Min. shareholder’s equity TRY 20 million Privileged shares regarding management rights At least one leading shareholder- general partner Registered capital Min. paid in/issued capital TRY 5 million (approx. $2,3 million) Min. shareholder’s equity TRY 5 million Privileged shares regarding management & dividend righst No leading shareholder requirement Public Offering Sale to Qualified Investors Prospectus to be approved by CMB Issue document to be approved by CMB Public Offering Sale to Qualified Investors 1 Year 18 Mo 18 Mo Investments other than PE and VC: Max 49% Investments in Foreign CIS: Max. 49% Pledges, mortgages and guarantees given-established on behalf of SME’s in the portfolio: Max 10% Participation in Management and Advisory Companies: Max 10% Unlisted shares of publicly held companies Max 25% Public Offering Sale to Qualified Investors Investments other than PE and VC: Max 49% Participation in Management