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Private Equity Agreement Template for Australia

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Key Requirements PROMPT example:

Private Equity Agreement

"I need a Private Equity Agreement for a A$50 million investment into an Australian technology startup, with specific provisions for anti-dilution protection and an IPO exit option targeted for March 2025."

Document background
The Private Equity Agreement serves as the primary transaction document for private equity investments in Australia, typically used when a private equity firm acquires a significant stake in a target company. The agreement must comply with Australian corporate law, particularly the Corporations Act 2001 and associated regulations. It addresses crucial aspects such as investment terms, shareholder rights, governance structures, and exit mechanisms. This document is essential for both domestic and international private equity transactions in Australia, requiring careful consideration of local regulatory requirements, including foreign investment restrictions where applicable. The agreement typically includes detailed provisions for protecting investor interests while ensuring operational flexibility for the target company's growth and development.
Suggested Sections

1. Parties: Identifies all parties to the agreement, including the private equity firm, target company, and any other relevant stakeholders

2. Background: Sets out the context of the transaction and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Investment Terms: Details the investment structure, purchase price, and payment terms

5. Conditions Precedent: Specifies conditions that must be satisfied before completion

6. Completion Mechanics: Outlines the process and requirements for closing the transaction

7. Warranties and Representations: Contains statements of fact and assurances from the parties

8. Governance Rights: Establishes board composition, voting rights, and management control

9. Reserved Matters: Lists decisions requiring specific shareholder approval

10. Transfer Restrictions: Sets out limitations on share transfers and ownership changes

11. Exit Provisions: Details mechanisms for future sale or IPO of the company

12. Confidentiality: Governs the treatment of confidential information

13. Dispute Resolution: Establishes procedures for resolving disputes

14. General Provisions: Contains standard boilerplate clauses and miscellaneous terms

Optional Sections

1. Anti-Dilution Protection: Protects investors from dilution in future funding rounds - included when dealing with companies likely to require future capital raises

2. Tag-Along Rights: Allows minority shareholders to join in the sale of shares by majority shareholders - included when there are multiple shareholders

3. Drag-Along Rights: Enables majority shareholders to force minority shareholders to join in the sale - included when there are multiple shareholders

4. Employee Share Scheme: Establishes framework for employee equity participation - included when management incentivization is part of the deal

5. Environmental, Social and Governance (ESG): Sets out ESG requirements and reporting - included when ESG compliance is a key consideration

6. Foreign Investment Conditions: Additional provisions for foreign investors - included when foreign investment approval is required

7. Earn-out Provisions: Details performance-based additional payments - included when part of purchase price is contingent on future performance

Suggested Schedules

1. Schedule 1 - Company Details: Complete corporate information, share capital structure, and subsidiaries

2. Schedule 2 - Warranties: Detailed warranties and representations given by the parties

3. Schedule 3 - Reserved Matters: Comprehensive list of decisions requiring special approval

4. Schedule 4 - Completion Deliverables: List of documents and actions required at completion

5. Schedule 5 - Key Performance Indicators: Specific performance metrics and targets

6. Schedule 6 - Management Agreement Terms: Key terms of management employment or service agreements

7. Appendix A - Share Capital Table: Detailed breakdown of shareholding pre and post-investment

8. Appendix B - Business Plan: Agreed business plan and financial projections

9. Appendix C - Corporate Structure Chart: Diagram showing corporate structure and ownership

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































































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Relevant Industries

Technology

Healthcare

Manufacturing

Retail

Financial Services

Infrastructure

Real Estate

Consumer Goods

Professional Services

Energy

Mining

Agriculture

Education

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Investment

Risk and Compliance

Due Diligence

Board of Directors

Executive Leadership

Corporate Governance

Treasury

Mergers and Acquisitions

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Investment Director

Private Equity Partner

Corporate Lawyer

Investment Manager

Due Diligence Manager

Transaction Advisory Manager

Company Secretary

Risk Manager

Compliance Officer

Board Director

Managing Director

Investment Analyst

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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