Publication detail

Private Equity and Venture Capital: Investment Fund Structures in Europe

ZINECKER, M. SVIRÁK, P. GREBÍKOVÁ, M.

Original Title

Private Equity and Venture Capital: Investment Fund Structures in Europe

Type

journal article - other

Language

English

Original Abstract

Suitable legal fund structures for private equity and venture capital (PE/VC) investments and their tax treatment have been considered as a key factor for stimulating the business environment. The Czech Venture Capital Association stresses that legal barriers are an important reason behind the limited scope of resources available to domestic PE/VC funds. Legal barriers prevent the establishment of a standard PE/VC fund in the territory of the Czech Republic, which fact in turn has a negative impact on the level of development of the domestic PE/VC market. In order to encourage the development of the market, this paper addresses filling the existing research gap concerning the following issues of the Czech PE/VC market: How the current Czech legislation regulates the legal fund structures for PE/VC investments? What is the tax treatment of PE/VC funds and individual investors in the Czech Republic? What are the legal and tax regulations on the main European markets for PE/VC? What are the key requirements for improvements of the current situation on the Czech PE/VC market? The nature of this study is explorative and it relies on primary and secondary data. Results of the study stress that the non-existence of the Limited Partnership legal form in particular is a weak spot of the current Czech legislation. The only Czech legal structure for PE/VC investments – the Qualified Investor Fund – does not sufficiently accommodate the requirements of market participants. Inadequate manner of market regulations can also be pointed out in addition to inflexible corporate law, tax obstructions and non-transparency of the current structures. In conclusion this study formulates proposals how to change the existing corporate law and the regulation of the PE/VC financial market segment in the Czech Republic. The proposals are based on models provided by selected European countries and create suitable conditions for a successful development of the Czech PE/VC market.

Keywords

Private Equity, Venture Capital, Tax and Legal Environment, Fund Structures, Tax Treatment.

Authors

ZINECKER, M.; SVIRÁK, P.; GREBÍKOVÁ, M.

RIV year

2012

Released

31. 12. 2012

Publisher

IBIMA

Location

USA

ISBN

2169-0367

Periodical

Journal of Eastern Europe Research in Business & Economics

Year of study

2012

Number

2

State

United States of America

Pages from

25

Pages to

38

Pages count

13

URL

http://ibimapublishing.com/articles/JEERBE/2012/471840/

Full text in the Digital Library

http://hdl.handle.net/11012/70194

BibTex

@article{BUT97527,
  author="Marek {Zinecker} and Pavel {Svirák} and Monika {Hodinková}",
  title="Private Equity and Venture Capital: Investment Fund Structures in Europe",
  journal="Journal of Eastern Europe Research in Business & Economics",
  year="2012",
  volume="2012",
  number="2",
  pages="25--38",
  doi="10.5171/2012.471840",
  issn="2169-0367",
  url="http://ibimapublishing.com/articles/JEERBE/2012/471840/"
}