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#9TDAYVC-DAY-5 Who is Sponsor & Investment Manager in VC? ๐ฏSponsors: Sponsor means a person who Setup AIF & Invests in. The Application to SEBI is made by the Sponsor.The sponsors should have to satisfy the criteria of Fit & Proper Person as per 2008 SEBI Regulations ACT. Criteria is mentioned below: Defaulter, Criminal Cases & Insolvency pending case holders are not allowed. Sponsors has to be informed to SEBI & need to get approval before they held operations. The critical functions include: Sponsoring the Fund, Defining the Theme, Fund in Appropriate structure, Registration, Formation of the fund from time to time. ๐ฏ Investment Managers: These will be appointed by the sponsors to manage the fund & also can be considered as sponsors of the fund. The Sponsorship Company does appoint the Investment Management company in which the sponsors are principal executives. The Investment Managers are known as GPโS. Managing Partners are also called Sponsors. More in Comments๐
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#9TDAYVC-DAY-9 ๐ฏWhat is Due Diligence? ๐ฏWhat is Sponsors Commitment? ๐ฏDue Diligence: It should be conducted at two levels in AIF- When Investor subscribes to fund Corpous & The fund makes an Investment into Investee Companies. ๐ฏ Sponsor
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#9TDAYVC- DAY-8 ๐ฏWho are Custodians in VC? ๐ฏWhat is Net Asset Value? ๐ฏCustodians:Custodians are for security but also safekeeping the Investments.Custodians needs to give & accept delivery securities of dematerialised Investment Funds whic
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#9TDAYVC-DAY-12 ๐ฏTypes of Expenses for VC? ๐ฏWhat is a Self-Managed Fund? ๐ฏOrganisational Expenses: These are costs for VC Funds which includes such as Incorporation Costs, Statutory Compliance Cost of the Funds, Placement Commissions, Distri
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#9TDAYVC-DAY-12 ๐What is Management Fees? ๐What is a Expense for VC? ๐ฏManagement Fees- Management Fees & Expenses contributed to the fund as per investment agreement between fund & Investment Manager.No SEBI Regulations in this Matter. It
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#9TDAYVC- DAY10 ๐ฏWhat is meant by Blind Pool? ๐ฏWhat is Draw Down? ๐ฏCapital Commitments: Capital Commitments under less than 1 Crore is not acceptable under AIF.Employees or Directors of the AIF should Invest a minimum of 25 lakhs. 20 Crores
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#9TDAYVC-DAY-17 ๐ฏTypes of Waterfalls in VC? ๐ฏWhat is Clawback? Two types that are โEuropean & American Waterfallโ-Under European Waterflow, 100% of all Investment Cash is paid out to Investors on a pro-rata basis & therefore preferred returns
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#9TDAYVC-DAY-16 ๐ฏWhat is High Watermark in VC? ๐ฏWhat are Distributions/Waterfall? Apart from hurdle rate, Some consider also โhigh watermarkโ This is more common practice in hedge funds. This market denotes the highest value recorded by the f
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