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Private Equity Agreement Template for India

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Key Requirements PROMPT example:

Private Equity Agreement

"I need a Private Equity Agreement for a $50 million investment in an Indian healthcare technology company, with provisions for a staged investment over three tranches in 2025 and specific focus on founder retention and technology IP protection clauses."

Document background
The Private Equity Agreement serves as the principal document governing institutional investment in private companies within the Indian jurisdiction. It is utilized when a private equity fund or similar institutional investor seeks to make a significant equity investment in a target company. The agreement must comply with Indian regulatory framework, including the Companies Act 2013, SEBI regulations, and foreign investment norms where applicable. It typically includes detailed provisions on investment terms, governance rights, minority protection, exit mechanisms, and representations and warranties. The document is essential for both domestic and cross-border private equity transactions, requiring careful consideration of sector-specific regulations, foreign investment restrictions, and tax implications under Indian law.
Suggested Sections

1. Parties: Identification of the investing entity, target company, promoters, and other key stakeholders

2. Background: Context of the transaction, including company history and investment rationale

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Investment Terms: Details of investment amount, valuation, and securities being issued

5. Conditions Precedent: Conditions that must be satisfied before investment completion

6. Completion Mechanics: Step-by-step process for closing the investment transaction

7. Representations and Warranties: Statements of fact and assurances from the company and promoters

8. Covenants: Ongoing obligations of the company and promoters

9. Board Composition and Governance: Board structure, appointment rights, and corporate governance framework

10. Reserved Matters: Decisions requiring investor consent

11. Information and Inspection Rights: Investor's rights to company information and inspection

12. Transfer Restrictions: Limitations on transfer of shares by parties

13. Exit Rights: Mechanisms for investor exit including IPO, strategic sale, and put options

14. Events of Default: Circumstances constituting default and consequences

15. Indemnification: Protection against losses due to breach or misrepresentation

16. Confidentiality: Protection of confidential information

17. Dispute Resolution: Mechanism for resolving disputes between parties

18. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

19. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

Optional Sections

1. Tag-Along Rights: Rights of investor to join in sale of shares by promoters - included when minority investor protection is crucial

2. Drag-Along Rights: Rights to force other shareholders to join in sale - included for majority investors

3. Anti-Dilution Protection: Protection against value dilution in down rounds - included for most VC/PE investments

4. ESOP Pool: Employee stock option provisions - included when company has/plans employee stock programs

5. Founder/Key Employee Obligations: Non-compete and non-solicit provisions - included when founder retention is crucial

6. Strategic Rights: Special rights for strategic investors - included for industry-specific investors

7. Multiple Closing Provisions: Mechanics for multiple investment tranches - included for staged investments

8. Foreign Investment Compliance: Special provisions for foreign investors - included when investor is foreign entity

Suggested Schedules

1. Schedule 1: Capital Structure: Pre and post-investment shareholding pattern

2. Schedule 2: Conditions Precedent: Detailed list of conditions to be satisfied before completion

3. Schedule 3: Warranties: Detailed warranties given by company and promoters

4. Schedule 4: Reserved Matters: Comprehensive list of investor consent matters

5. Schedule 5: Completion Schedule: Detailed steps for completion and required documentation

6. Schedule 6: Company Information: Key company details including financials, material contracts, and assets

7. Schedule 7: Disclosure Schedule: Exceptions to warranties and representations

8. Schedule 8: Key Employees: List of key employees and their terms of employment

9. Appendix A: Form of Legal Opinion: Format of legal opinion to be provided at completion

10. Appendix B: Board Resolution Format: Format of required corporate authorizations

11. Appendix C: Employment Agreements: Format of key employee agreements

12. Appendix D: Constitutional Documents: Amended articles of association and other corporate documents

Authors

Alex Denne

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

Relevant legal definitions






































































Clauses






































Relevant Industries

Technology

Healthcare

Manufacturing

Financial Services

E-commerce

Real Estate

Infrastructure

Consumer Goods

Education

Renewable Energy

Telecommunications

Biotechnology

Retail

Agriculture Technology

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Compliance

Investment

Due Diligence

Corporate Secretarial

Risk Management

Strategy

Senior Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Investment Director

Private Equity Partner

Corporate Lawyer

Investment Manager

Company Secretary

Chief Legal Officer

Investment Analyst

Due Diligence Officer

Compliance Officer

Managing Director

Board Director

Finance Director

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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