Knowledge

Pledge fund

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that purchases the shares. The fund may be organized within one SPV or establish separate SPVs for every portfolio investment. Execution of investors' right to opt-in and opt-out of deals makes pledge fund management, administration and documentation more complicated than of traditional private
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equity fund. Pledge fund model minimizes investing partners' capital risks but has certain drawbacks. For example, the extra time required to assess and screen investment opportunities and deal execution uncertainty may be disadvantageous in competitive acquisition process.
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fund, the pledge fund allows investors to opt-in or opt-out of each investment opportunity the manager presents. The capital is contributed to a
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clubs that allowed members to decide on whether to take part in a certain investment opportunity. The model itself isn't limited to
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and can be applied across a multitude of business sectors wherein investments are made on per-deal basis.
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that allows backers to make investment decisions on deal-to-deal basis. It emerged after the
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This private equity or venture capital-related article is a
188: 804: 31:when many investors abandoned the conventional 787: 174: 676:Private equity and venture capital investors 110: 93: 87: 794: 780: 711: 691: 648:Taxation of private equity and hedge funds 465:Private investment in public equity (PIPE) 181: 167: 805: 162: 141:"Deal-By-Deal and Pledge Fund Models" 750: 132: 139:Geoff Kittredge, John W. Rife III. 13: 14: 834: 754: 731: 730: 721: 720: 710: 701: 700: 690: 681: 680: 671: 670: 94:Will Kenton (January 6, 2018). 448:Publicly traded private equity 1: 716:List of venture capital firms 80: 766:. You can help Knowledge by 696:List of private equity firms 453:Business Development Company 25:collective investment scheme 16:Collective investment scheme 7: 58: 10: 839: 749: 540:High-net-worth individuals 330:Leveraged recapitalization 666: 563: 482: 428:Limited liability company 406: 388:Venture capital financing 343: 335:Dividend recapitalization 300: 291: 248: 200: 35:fund format in favour of 495:Institutional investors 46:Unlike the traditional 633:Liquidation preference 598:Distribution waterfall 550:Sovereign wealth funds 52:special purpose entity 706:Venture capital firms 458:Venture capital trust 823:Private equity stubs 686:Private equity firms 414:Private equity firms 363:Post-money valuation 240:Equity co-investment 736:Portfolio companies 653:Undercapitalization 505:Insurance companies 423:Limited partnership 368:Pre-money valuation 70:Private equity fund 588:Capital commitment 358:Business incubator 325:Buy–sell agreement 775: 774: 744: 743: 593:Capital structure 478: 477: 320:Divisional buyout 315:Management buyout 310:Financial sponsor 41:venture financing 830: 796: 789: 782: 758: 751: 734: 733: 724: 723: 714: 713: 704: 703: 694: 693: 684: 683: 674: 673: 535:Commercial banks 525:Investment banks 433:Carried interest 298: 297: 201:Investment types 183: 176: 169: 160: 159: 153: 152: 150: 148: 136: 130: 129: 127: 125: 114: 108: 107: 105: 103: 91: 838: 837: 833: 832: 831: 829: 828: 827: 818:Venture capital 803: 802: 801: 800: 747: 745: 740: 726:Angel investors 662: 613:High-yield debt 566:financial terms 565: 559: 474: 402: 383:Startup company 339: 293: 287: 244: 196: 194:venture capital 187: 157: 156: 146: 144: 137: 133: 123: 121: 116: 115: 111: 101: 99: 92: 88: 83: 61: 17: 12: 11: 5: 836: 826: 825: 820: 815: 813:Private equity 799: 798: 791: 784: 776: 773: 772: 759: 742: 741: 739: 738: 728: 718: 708: 698: 688: 678: 667: 664: 663: 661: 660: 655: 650: 645: 640: 635: 630: 625: 620: 615: 610: 605: 600: 595: 590: 585: 580: 575: 569: 567: 561: 560: 558: 557: 552: 547: 545:Family offices 542: 537: 532: 530:Merchant banks 527: 522: 517: 512: 507: 502: 497: 492: 486: 484: 480: 479: 476: 475: 473: 472: 467: 462: 461: 460: 455: 445: 440: 438:Management fee 435: 430: 425: 420: 410: 408: 404: 403: 401: 400: 395: 390: 385: 380: 375: 370: 365: 360: 355: 353:Angel investor 349: 347: 341: 340: 338: 337: 332: 327: 322: 317: 312: 306: 304: 295: 289: 288: 286: 285: 280: 275: 270: 265: 260: 254: 252: 246: 245: 243: 242: 237: 232: 227: 222: 217: 216: 215: 204: 202: 198: 197: 190:Private equity 186: 185: 178: 171: 163: 155: 154: 131: 120:. Divestopedia 109: 98:. Investopedia 85: 84: 82: 79: 78: 77: 72: 67: 65:Private equity 60: 57: 48:private equity 37:angel investor 33:private equity 15: 9: 6: 4: 3: 2: 835: 824: 821: 819: 816: 814: 811: 810: 808: 797: 792: 790: 785: 783: 778: 777: 771: 769: 765: 760: 757: 753: 752: 748: 737: 729: 727: 719: 717: 709: 707: 699: 697: 689: 687: 679: 677: 669: 668: 665: 659: 656: 654: 651: 649: 646: 644: 641: 639: 636: 634: 631: 629: 626: 624: 621: 619: 616: 614: 611: 609: 606: 604: 601: 599: 596: 594: 591: 589: 586: 584: 581: 579: 576: 574: 571: 570: 568: 562: 556: 553: 551: 548: 546: 543: 541: 538: 536: 533: 531: 528: 526: 523: 521: 518: 516: 513: 511: 510:Fund of funds 508: 506: 503: 501: 500:Pension funds 498: 496: 493: 491: 488: 487: 485: 481: 471: 468: 466: 463: 459: 456: 454: 451: 450: 449: 446: 444: 441: 439: 436: 434: 431: 429: 426: 424: 421: 419: 415: 412: 411: 409: 405: 399: 398:Venture round 396: 394: 391: 389: 386: 384: 381: 379: 376: 374: 371: 369: 366: 364: 361: 359: 356: 354: 351: 350: 348: 346: 342: 336: 333: 331: 328: 326: 323: 321: 318: 316: 313: 311: 308: 307: 305: 303: 299: 296: 290: 284: 281: 279: 276: 274: 271: 269: 266: 264: 261: 259: 258:Early history 256: 255: 253: 251: 247: 241: 238: 236: 233: 231: 228: 226: 223: 221: 218: 214: 211: 210: 209: 206: 205: 203: 199: 195: 191: 184: 179: 177: 172: 170: 165: 164: 161: 147:September 21, 142: 135: 124:September 21, 119: 118:"Pledge Fund" 113: 102:September 21, 97: 96:"Pledge Fund" 90: 86: 76: 73: 71: 68: 66: 63: 62: 56: 53: 49: 44: 42: 38: 34: 30: 29:dotcom bubble 26: 22: 768:expanding it 761: 746: 658:Vintage year 583:Capital call 555:Crowdfunding 490:Corporations 442: 393:Venture debt 145:. Retrieved 134: 122:. Retrieved 112: 100:. Retrieved 89: 45: 20: 18: 520:Foundations 443:Pledge fund 235:Secondaries 75:Search fund 21:pledge fund 807:Categories 608:Envy ratio 515:Endowments 378:Seed money 292:Terms and 81:References 578:Cap table 483:Investors 407:Structure 225:Mezzanine 213:Leveraged 628:Leverage 564:Related 294:concepts 59:See also 638:M&A 345:Venture 250:History 220:Venture 143:. EMPEA 603:EBITDA 302:Buyout 230:Growth 208:Buyout 418:funds 283:2020s 278:2010s 273:2000s 268:1990s 263:1980s 23:is a 764:stub 470:SPAC 416:and 373:SAFE 192:and 149:2019 126:2019 104:2019 643:PME 623:IRR 618:IPO 573:AUM 809:: 19:A 795:e 788:t 781:v 770:. 182:e 175:t 168:v 151:. 128:. 106:.

Index

collective investment scheme
dotcom bubble
private equity
angel investor
venture financing
private equity
special purpose entity
Private equity
Private equity fund
Search fund
"Pledge Fund"
"Pledge Fund"
"Deal-By-Deal and Pledge Fund Models"
v
t
e
Private equity
venture capital
Buyout
Leveraged
Venture
Mezzanine
Growth
Secondaries
Equity co-investment
History
Early history
1980s
1990s
2000s

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