Venture capital scheme leverage requires placement memorandum disclosure, supermajority investor consent for deviations, and proportionate risk management. Borrowing and leverage by Venture Capital Schemes are permitted only where the placement memorandum discloses the maximum leverage and calculation ... Summary
Venture capital scheme leverage requires placement memorandum disclosure, supermajority investor consent for deviations, and proportionate risk management.
Borrowing and leverage by Venture Capital Schemes are permitted only where the placement memorandum discloses the maximum leverage and calculation methodology. Leverage must comply with those disclosures, and any deviation requires consent of investors holding at least two-thirds in value. A Fund Management Entity proposing to employ leverage must maintain a comprehensive risk-management framework appropriate to the scheme's size, complexity and risk profile.
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