Are Rights for VC and PE works the same way??



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I would like to know whether rights that we discussed for VC funds holds for PE firms as well..What are important rights that PE investors generally get???

1 Answer(s)


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The rights really depend on the specific deal. Sometimes PE gets very little rights since they are investing in much larger deals and hence get a small stake. However both PE and VC many times add clauses that give them huge rights if the deal goes bad and if the company is performing badly.

When everything is going well, everyone is happy and they dont exercise their rights.