EVCA Governing Principles

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2Governing Principles - EVCA Professional Standards - May 2003 (reprint January 2009)
1. Introduction3This document is intended to provide governing principles for the establishment and management of a privateequity or venture capital initiative and guidance on how those principles may apply during the life cycle of a fund.In doing so, it takes account of common market practice and corporate governance in the European privateequity and venture capital industry wherever possible. EVCA expects that the document as a whole, and theexamples of sound practice in particular, will be modified over time to reflect developments in the industry.• Governing principlesThe core of the document are the nine governing principles laid out on page 4. These should be consideredand observed by EVCA Members and those involved in the establishment and management of private equityand venture capital funds (including those advising on and arranging investments) at all stages during their lifecycle (which will usually comprise fundraising, investing, management of investments, disposal of investments,distributions to investors and liquidation of the fund).• Examples of sound practiceExamples of the application of the Governing Principles are provided on the following pages. They illustrate howthese principles may apply to certain stages of the life cycle of a fund, but are not intended to be exhaustiveor prescriptive. Whilst the examples are intended to provide a useful resource for managers, it should not beassumed that 'one size fits all'. Some of the examples may be inappropriate as a result of the size, nature,jurisdiction of regulation and complexity of some managers' operations. The different investment objectives ofsome funds may also mean that the examples are not appropriate to all funds for which a manager is responsible.• Limits of the documentLocal legal and regulatory requirements, and the extent to which there are fiduciary relationships and obligations,differ widely in the various European jurisdictions. The first governing principle is that these legal requirementsare observed in all relevant jurisdictions. This document does not describe those requirements or provide acomplete or mandatory statement of the duties of those involved in the establishment and management of privateequity and venture capital funds. It is not a substitute for professional advice, which should still be obtainedwhere appropriate.The document does not reflect the impact of differing legal structures used for private equity and venture capitalvehicles internationally. In particular, it is assumed that funds are being marketed to sophisticated investors anddo not reflect the large range of legal protections for funds that are marketed to retail investors.Governing Principles - EVCA Professional Standards - May 2003 (reprint January 2009)
Page 1 and 2: EVCA Governing PrinciplesMay 2003 (
Page 3: Table of Contents 11. Introduction
Page 7 and 8: 3. Examples53.1. Initial considerat
Page 10 and 11: 83. Examples3.2.3. Origin of fundsQ
Page 12 and 13: 103. Examples3.2.6. Structure of th
Page 14 and 15: 123. Examples3.2.7. Presentations t
Page 16 and 17: 143. ExamplesRecommendation:A manag
Page 18 and 19: 163. Examples3.3.4. Possible means
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Page 38: 36 4. Annex3.3.8. What issues shoul

EVCA Governing Principles

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