Alt Valuations’ Post

As the year winds down, venture capital funds face a critical task: the annual audit. Ensuring transparency and compliance is no small feat, but with the right preparation, it doesn’t have to be so stressful. From updating valuation policies to organizing portfolio information, we’ve outlined some essential tips to streamline your venture fund audit — helping you save time, reduce back-and-forth, and keep the process running smoothly. Head to our latest blog to learn more. #VentureCapital #AuditSuccess #FinancialConsulting #VCFundAdministration

The article highlights that the 2 and 20 structure is not always the standard and while it is the most common for funds managing $100M, he management fee structures vary. For those of you who are working for VC firms, I would love to learn if your firm uses the 2 and 20 structure. If not, then what structure for the management fee and carry does your firm use, if you feel comfortable sharing? Please share!!!

Although tighter macro conditions have weighed on buyout and late stage venture capital, we see signs for optimism in small-mid buyouts and early stage venture capital. Read the full Q1 #PrivateEquity lens here:https://okt.to/qsiexA #Schroders #Investing #PrivateAssets #PrivateMarkets

7 Tips to Stay Prepared for Your Venture Capital Fund’s Annual Audit Annual audit coming up? Don’t let it catch you off guard. From valuation policies to financial statement notes, Kranz’s blog has you covered with actionable tips to make your fund audit smooth and efficient. #VentureCapital #FundAudit #FinancialTransparency #AuditPreparation #ValuationPolicy #PortfolioManagement #FinancialReporting #VCInsights #KranzConsulting #AuditSuccess Is your venture capital fund ready for audit season? Check out these 7 essential tips to stay organized, streamline the process, and ensure audit success. A little preparation now can save time and reduce stress later! #VentureCapital #FundAudit #FinancialTransparency #AuditPreparation #ValuationPolicy #PortfolioManagement #FinancialReporting #VCInsights #KranzConsulting #AuditSuccess https://lnkd.in/gEYSbJ8e

Attention private fund managers: The SEC's new final rule on Section 3(c)(1) exemptions could affect your operations. Get insights on the key changes and implications in Lowenstein Sandler LLP's recent Investment Management client alert. #investmentmanagement #venturecapital #investmentfunds #lawyers #regulatorycompliance

This VC Fund Manager Paid $5.5 Million in SEC Fines. Here is how to Set Up Your VC Fund the Right Way 👇 Alumni Ventures Group was charged with misleading marketing statements regarding their fee structure and engaging in improper inter-fund transactions without adequate disclosure to investors. Here's what emerging fund managers should know about starting a VC fund: 1. Build a compelling track record: Demonstrate successful angel investments or experience at an established VC firm. 2. Proprietary dealflow aka value proposition: Articulate how your expertise, network, and strategy will attract founders to you ensuring you have a unique dealflow your LPs do not have access to otherwise. 3. Choose the right legal structure: Most VC funds are set up as Limited Partnerships (LPs), but there are also master series structures (both LPs and LLCs). 4. Draft a comprehensive Private Placement Memorandum (PPM): This critical document outlines your fund's strategy, risks, and terms for potential investors. It both protects you from liability and serves as a key marketing tool. Institutional investors would expect to see a PPM in your data room. 5. Create a solid Limited Partnership Agreement (LPA): This governs the relationship between you (the General Partner) and your investors (Limited Partners). Key terms include management fees, carry structure, and investment restrictions. 6. Understand SEC registration requirements: You need to file Form ADV within 60 days of the initial closing of the fund. Many venture fund advisers may qualify as exempt reporting advisers, which means they would need to fill out only Part I of Form ADV. Starting a VC fund requires navigating complex legal and regulatory landscapes while being an attractive partner for investors and founders. With proper preparation, expert guidance, and a strong value proposition, you can lay a solid foundation for success. #VentureCapital #vcfund #vcfundformation #FundManagement #StartupInvesting #LegalCompliance

An excellent overview on the valuation process for funds with illiquid investments.

We advised Mubadala Investment Company in its acquisition, through its wholly owned asset management subsidiary Mubadala Capital, with members of the Fortress management team, of SoftBank Group Corp’s equity interest in Fortress Investment Group, a highly diversified global investment manager. Mubadala Capital now owns 68% of Fortress, with Fortress management owning the remaining 32%. Mubadala Capital, headquartered in Abu Dhabi, manages CAD 22billion across its own investments and third-party capital vehicles on behalf of institutional investors, including four flagship private equity funds, four early-stage venture funds, two funds in Brazil focused on special opportunities and an evergreen investment strategy focused on private market opportunities. The A&O Shearman team was led by partners Clare O'Brien, Sean Skiffington, John Cannon, Jai Garg, Larry Crouch and Lorenz Haselberger, M&A associates Luca Marescotti and Sebastian de la Puente and senior tax associate Matthew Brown, with significant support from attorneys across multiple practices. Learn more here. #AssetManagement #Deal 

🗃️How does a private equity fund work? ➡️Investor Commitment: ◾Investors commit to a fund at the beginning, agreeing to provide funds over time as needed for investments, fees, and expenses. ➡️Investment Process: ◾Private equity fund managers use their expertise to identify investment opportunities. ◾When a suitable investment is found, the required amount is drawn from investors and invested in the chosen portfolio company. ➡️Portfolio Management: ◾The fund manager works closely with the management of the portfolio company for an average of three to five years. ◾The goal is to enhance the company's value through various means, such as launching new products, acquiring technologies, or restructuring. ➡️Exit Strategy: ◾After improving the company's performance, the portfolio company may be sold to another investor or listed on the stock market for a profit. ◾Profits are distributed to investors, with a portion retained by the manager as a performance fee (carried interest). ➡️Use of Investment: ◾Funds invested in portfolio companies can support various purposes, including business startups (venture capital), product development, technology advancement, acquisitions, working capital expansion, balance sheet strengthening, company restructuring, or resolving ownership issues like management buyouts. This simplified explanation outlines how private equity investments work and the potential uses of capital within portfolio companies. #FundAccounting #PrivateEquity

🗓️ Register now 💰 Masterclass: alternative investment webinar. Join us on 24 October for a masterclass that will help demystify access to alternative private capital. The event will offer the opportunity to better understand the access to institutional private capital solutions for late-stage businesses as well as more mature ventures, taking into consideration the underlying business profile and strategy of the company.     Find out more and register 👉 https://lnkd.in/gC7vQUy7 #Investment #AlternativeInvestment #SME #Funding