A THOROUGH UNDERSTANDING OF PRIVATE EQUITY

RETOUR SOMMAIRE

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2010

MAIN ACTORS AND STRUCTURES

Figure 31: Evolution of capital under management and number of US venture capi- tal funds (1980-2008) The last decade witnessed a significant growth in terms of US venture funds capital under management, while the number of venture capital funds in existence nearly doubled (see figure 31).

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Number of US venture capital funds in existence: 1988: 715 funds

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1998: 1,085 funds 2008: 1,366 funds

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100 Capital under mangement in $bn

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2.2

0

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Source: NVCA, 2009

As it is the case in Europe (refer to adequate part of brochure), an increasing pressure on regulation of private funds and/or their advisers emerged in the wake of the economic cri- sis. The United States did not escape this trend with Treasury Secretary Tim Geithner speak- ing in favor of measures according to which all advisers to private funds with assets under management over a certain threshold would be required to register with the SEC (Securities and Exchange Commission) and therefore be subject to some regulatory supervision. Two legislative proposals have been introduced in the US Congress early 2009 in that respect: the Hedge Fund Transparency Act (Grassley/Levin Bill) that would require all - and not only hedge funds - privately offered funds with at least $50 million in assets to register with the SEC (among other), and the Hedge Fund Advisor Registration Act that would remove the exemption from SEC registration for investment advisers with fewer than 15 clients on any 12 months period and would also apply to private equity funds.

2.2.5

Switzerland

Although most of the venture capital funds active in the Swiss market are offshore LPs, governed under the laws of Guernsey, Jersey, Cayman Islands, Scotland and other Anglo- Saxon jurisdictions 41 , it should be noted that since 2007, it is possible under Swiss law to incorporate Limited Partnerships for Collective Investment Schemes investing in private equity, with the new SCPC (“Société en Commandite de Placements Collectifs”) vehicle.

41 Source: Practical Law Company, “Private equity 2009 Volume 2: Venture Capital”, 2009

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