tailieunhanh - Academic Press Private Equity and Venture Capital in Europe_3

Tham khảo tài liệu 'academic press private equity and venture capital in europe_3', khoa học xã hội, kinh tế chính trị phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 74 CHAPTER 5 Legal framework in the US and UK for equity investors FIGURE Investing process structure of trusts in the UK. Investment 1 Investment 2 Investment n FIGURE Organizational structure of VCTs. LPs. Because they are listed companies VCTs have no fixed maturity hence they are considered as perpetual investments. Only private individuals can subscribe to or buy shares in VCTs which invest in trading companies by providing them with funds to promote development and growth. VCTs realize their investments and make new ones periodically however at least 70 of their investment portfolio is composed of unlisted companies. Fiscal incentive like participation exemption and reduction on earnings tax operates wider. VCTs are exempt from corporation tax on any gains arising from the disposal of their investments. The main difference between the VCT and the European closed-end is their transparency level. After investors have transferred their personal wealth into a Rules for UK equity investors 75 VCT they are unable to influence decisions made by the trust or trustee managers. Closed-end funds are completely transparent as defined by the EU regulating framework whereas the VCT is completely blind because investors are uninformed about the composition of the investment portfolio. Therefore there is no disclosure of the trust s investment activities. Another difference is that a VCT s trend cycle shows no correlation with the London Stock Exchange. Merchant banks Direct investment in equity is developed even though they it is declining in volume within banks dedicated to merchant banking Like the United States the UK banking system is much more involved in the equity market through dealing and brokerage rather than advisory and placement. However private equity investments through merchant banking are common during seed start-up and early stage financing. Business Angels As in the US market Business Angels do not represent a legal .

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