Monthly Archives - September 2017

A Beginner’s Guide to Pension Fund Framework

When we think about large institutional investors with a careful look into the governance, the first name that comes to our mind is Pension Fund. In developing countries pension fund is considered to be one of the biggest surplus units that provide funds to the needy deficit units on a longer-term basis. But during the 1930’s or during 1040’s – the concept of the pension fund was totally non-existent. In a welfare state whereby the state takes care of [...]

September 27, 2017 By Articles, BMBA 0 Comments Read more...

Key Risks under Venture Capital Framework

There are a number of sources from where risks under the venture capital framework can stem from; some of these risks are systematic like macro-economic risk and regulatory risk. But majority of the risks stem from bad management   Under the existing Alternative investment rule – 2015, it has been postulated that the eligible investors will not be able to liquid his or her position before the fund’s tenure. So it is very clear that investment in the venture capital fund [...]

September 19, 2017 By Articles, BMBA 0 Comments Read more...

Agency problem under Venture Capital Framework

There are a number of scenarios whereby agency problem can incur in the venture capital framework. Even though there are a number of stakeholders (fund manager, trustee, EI, portfolio companies etc.) in the venture capital framework, majority of the agency risks stem either from fund managers or Investee Company.   Fund manager needs to protect the interest of the eligible investors and the business should be conducted as per the due diligence. So, there should be adequate intellectual, financial and infrastructural [...]

September 11, 2017 By Articles, BMBA 0 Comments Read more...

Performance Evaluation under Venture Capital Framework

Based on the consensus collected from majority of the EIs, a fund manager can be replaced. So, it is extremely important to evaluate the Fund manager’s performance at a regular basis. There are a number of yardstick through which the performance of a fund manager can be evaluated.   PIC (paid –up capital) – Generally a ratio between the committed capital and paid-up capital is calculated after the final settlement of the fund corpus. A higher proportion of paid-up capital to [...]

September 4, 2017 By Articles, BMBA 0 Comments Read more...