January 1994 (Revised April 2011)
Background Note
HBS Case Collection

Note on Private Equity Partnership Agreements

Format:Print
| Language:English
| Pages:12

Abstract

Venture capital by necessity is a long-run investment. Consequently, since the mid-1960s virtually all venture financing has been raised through private partnerships with a ten-year or longer life span. To govern these investments, complex contracts have sprung up between venture capitalists and limited partners. These contracts provide an insight into the complex challenge of raising and managing a venture capital fund.