Private Equity Investment contracts are the contracts which are made between an organisation and an individual for investment in private equity. Such contracts are formal in nature and are legally binding in the sense that the terms and conditions must be followed by the involved parties.
Sample private equity investment contract:
Contract code: HL/89
The contract has been entered into as of 29th June, 2011
This contract has been made between Fred Co. who is herein referred to as the private COMPANY and Mr. Daniel Brown who is herein referred to as the INVESTOR. The INVESTOR wishes to invest in the shares of the COMPANY for a certain period of time.
Details of INVESTOR
Address: 12-P, west block, TT building, London
Details of COMPANY
Address: 34-K, second floor, Friends colony, London
The COMPANY is a private manufacturer of electronics and the INVESTOR wishes to invest in the COMPANY. In this COMPANY, 60% shares are being owned by investors.
Terms and conditions of the contract:
- Payment details:
The total amount to be invested by the COMPANY: $2000000
This amount is invested in the form of buying of shares
- Term of contract:
Termination date of contract: 29th June, 2012
Total time period of contract: 12 months
- The COMPANY shall be entitled to updating the INVESTOR about the shares rise and fall.
- The INVESTOR must pay the full amount and must be given the right share of the profits earned in a timely manner.
Validation of the contract:
Daniel Brown Fred Richmond