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Private Equity Subscription Agreement
"I need a Private Equity Subscription Agreement for a Series B investment of USD 20 million by a US-based PE fund into our Indian healthcare technology company, with specific provisions for minority shareholder protection and a planned IPO exit by March 2025."
1. Parties: Identification of the company, investor(s), and other relevant parties to the agreement
2. Background/Recitals: Context of the transaction, including company's business and purpose of investment
3. Definitions and Interpretation: Definitions of key terms and rules of interpretation for the agreement
4. Subscription and Payment Terms: Details of shares being subscribed, price per share, and payment mechanisms
5. Conditions Precedent: Conditions that must be satisfied before the investment obligation becomes binding
6. Closing: Process and requirements for completing the investment transaction
7. Representations and Warranties: Statements of fact and assurances from the company and promoters
8. Investor Rights: Special rights granted to investors including board seats, veto rights, and information rights
9. Transfer Restrictions: Limitations on transfer of shares and special transfer rights
10. Covenants: Ongoing obligations of the company and promoters
11. Events of Default: Circumstances constituting breach and corresponding remedies
12. Indemnification: Protection against losses and liability allocation
13. Confidentiality: Obligations regarding confidential information
14. Notices: Process for formal communications between parties
15. Governing Law and Dispute Resolution: Applicable law and mechanism for resolving disputes
16. General Provisions: Standard boilerplate clauses including amendments, waivers, and severability
1. Tag-Along Rights: Include when investors require the right to join in sale of shares by promoters
2. Drag-Along Rights: Include when majority investors need the right to force other shareholders to join in a sale
3. Anti-Dilution Protection: Include when investors require protection against future down rounds
4. FCPA/Anti-Corruption Provisions: Include for foreign investors or when required by investor policy
5. Exit Rights: Include when investors require specific exit mechanisms or timelines
6. Founder/Promoter Lock-in: Include when requiring founders to maintain minimum shareholding
7. Multiple Closings: Include when investment is to be made in tranches
8. Foreign Investment Compliance: Include for foreign investors to ensure FEMA compliance
1. Schedule 1 - Capital Structure: Pre and post-investment shareholding pattern
2. Schedule 2 - Subscription Details: Detailed breakdown of shares, price, and consideration
3. Schedule 3 - Company Warranties: Comprehensive list of company representations and warranties
4. Schedule 4 - Conditions Precedent: Detailed list of conditions to be satisfied before closing
5. Schedule 5 - Closing Checklist: List of documents and actions required at closing
6. Schedule 6 - Reserved Matters: List of actions requiring investor consent
7. Schedule 7 - Corporate Governance Rights: Detailed provisions regarding board composition and governance
8. Appendix A - Deed of Adherence: Format for new shareholders to become party to the agreement
9. Appendix B - Financial Statements: Latest financial statements of the company
10. Appendix C - Disclosure Schedule: Exceptions to warranties and representations
Authors
Technology
Healthcare
Manufacturing
Financial Services
E-commerce
Consumer Goods
Real Estate
Infrastructure
Renewable Energy
Education
Telecommunications
Retail
Biotechnology
Agriculture
Media and Entertainment
Legal
Finance
Compliance
Corporate Development
Investment
Board of Directors
Company Secretarial
Risk Management
Corporate Strategy
Mergers & Acquisitions
Chief Executive Officer
Chief Financial Officer
General Counsel
Investment Director
Private Equity Partner
Corporate Lawyer
Investment Manager
Deal Principal
Managing Director
Company Secretary
Compliance Officer
Finance Director
Legal Counsel
Transaction Advisory Manager
Investment Associate
Board Director
Fund Manager
Chief Investment Officer
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