Structuring and financing private equity and venture capital transactions in Luxembourg

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bertrand Géradin
Keyword(s):  
Venture Capital ◽  
Design Methodology ◽  
Private Equity ◽  
Corporate Law ◽  
Efficient Manner ◽  
Equity Investment ◽  
Content Type ◽  
Key Issues ◽  
Practical Implications ◽  
Optimum Balance

Purpose Luxembourg is the jurisdiction of choice for many private equity and venture capital investors/funds. Though the optimum balance of financing instruments in relation to any structure varies according to its particular circumstances, one factor that all Luxembourg domiciled FDI structures have in common is the requirement for an appropriate level of equity investment. This article intends to summarize some of the topics frequently encountered in relation to equity structuring choices. Design/methodology/approach Author details the different steps and choices available to investors and funds. The article offers answers to questions to provide a broad, yet detailed, overview of the process and journey; from selecting the vehicle right through to distributing to investors, governance, and compliance. Findings To avoid an expensive mistake, it is paramount that the private equity or venture capital investors and management team receive detailed advice to ensure: (i) the deal is structured in the most tax efficient manner possible and the commercial deal is suitable for all parties, and (ii) the deal is structured in a manner which is effective under Luxembourg law, for both tax and legal purposes. Practical implications It is important that non-Luxembourg lawyers are able to identify key issues when negotiating the terms of the investment documents, in particular, the articles of association and shareholders' agreement. Originality/value Practical guidance from Luxembourg lawyer specializing in corporate law, mergers and acquisitions, venture capital and private equity transactions.

Guest editorial: Solving problems for service consumers experiencing vulnerabilities: a marketplace challenge

2021 ◽  
Vol 35 (6) ◽  
pp. 685-691
Author(s):  
Raechel Johns ◽  
Janet Davey
Keyword(s):  
Design Methodology ◽  
Guest Editorial ◽  
Individual Characteristics ◽  
Service Systems ◽  
Social Implications ◽  
Special Issue ◽  
Actor Network ◽  
Content Type ◽  
Key Issues ◽  
Practical Implications

Purpose While there is burgeoning service literature identifying consumer vulnerabilities and questioning the assumption that all consumers have the resources to co-create, limited research addresses solutions for consumers experiencing vulnerabilities. Service systems can provide support for consumers but can also create inequities and experienced vulnerabilities. This paper aims to identify current and further research needed to explore this issue and addresses marketplace problems for consumers experiencing vulnerabilities. Design/methodology/approach This viewpoint discusses key issues relating to solving marketplace problems for consumers experiencing vulnerabilities. A call for papers focused on solving marketplace problems for consumers experiencing vulnerabilities resulted in a large number of submissions. Nine papers are included in this special issue, and each one is discussed in this editorial according to five emergent themes. Findings Vulnerabilities can be temporary, or permanent, and anyone can suddenly experience vulnerabilities. Inequities and vulnerabilities can be due to individual characteristics, environmental forces, or due to the structure of the marketplace itself. Solutions include taking a strengths-based approach to addressing inequities and using a multiple-actor network to provide support. Practical implications The recommendations addressed in this paper enable more positive approaches to solving marketplace problems for consumers experiencing vulnerabilities. Social implications Taking a solutions-focused lens to research relating to vulnerabilities will contribute toward addressing inequities within the marketplace. Originality/value Increasingly, service literature is identifying inequities; however, very limited research addresses solutions for solving marketplace problems for consumers experiencing vulnerabilities. This paper suggests taking an approach focusing on strengths, rather than weaknesses, to determine strategies, and using the support of other actors (Transformative Service Mediators) where required.

Building firm capability: managerial incentives for top performance

2016 ◽  
Vol 37 (4) ◽  
pp. 41-46
Author(s):  
Francesco Castellaneta
Keyword(s):  
Competitive Advantage ◽  
Design Methodology ◽  
Private Equity ◽  
Firm Capabilities ◽  
Content Type ◽  
Incentive Programs ◽  
The Core ◽  
Capability Building ◽  
Firm Capability ◽  
Practical Implications

Purpose This paper aims to present a model of how incentives enhance competitive advantage by improving the sourcing, development and leveraging of firm capabilities. Design/methodology/approach The author first reviews the key findings of prominent academic and managerial papers on capability building and incentives. The author then proposes a model that advances our understanding of how incentives affect competitive advantage through capability building. The author applies this model to the empirical setting of private equity, where buyouts – by adopting the “carrot and stick” approach – improve the alignment of managerial and firm interests and, in turn, encourage capability building. Findings The model shows how incentives act on capabilities in three areas: the leveraging of existing capabilities, the sourcing of capabilities internally and the sourcing of capabilities externally. Practical implications The model is useful for focusing executives on how incentives impact the development of firm capabilities, which are at the core of competitive advantage. Originality/value This paper expands on existing literature by providing a model linking incentives to the competitive advantage of the firm. The model will encourage new ways of thinking about incentive programs, casting them as a method for developing firm capabilities and thereby sustaining firms’ competitive advantage.

2016 FINRA analysis: a record-breaking year for fines

2017 ◽  
Vol 18 (2) ◽  
pp. 1-8
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Disciplinary Actions ◽  
Variable Annuities ◽  
Content Type ◽  
Compliance Officers ◽  
Expert Analysis ◽  
Key Issues ◽  
To Receive ◽  
Practical Implications

Purpose To analyze FINRA’s 2016 sanctions and cases, the issues that resulted in the most significant fines, emerging enforcement trends, and make predictions about key issues for FINRA for 2017 and beyond. Design/methodology/approach Discusses the sanctions and disciplinary actions in 2016 and prior years; details the top 2016 enforcement issues measured by total fines assessed, including anti-money laundering, variable annuities, trade reporting, books and records, and unregistered securities; explains current enforcement trends, including fines of $1 million or more, sanctions against compliance officers, and suitability cases; and analyzes three enforcement topics that will likely continue to receive heightened attention from FINRA in 2017 and beyond: restitution, cybersecurity, and senior investors. Findings The fines ordered by FINRA in 2016 reached an all-time high while the amount of restitution ordered and the number of disciplinary actions remained on par with prior years. Practical implications Firms and their representatives should heed the trends in both the substantial fines FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value Expert analysis and guidance from experienced securities enforcement lawyers.

Why does performance management not perform?

2018 ◽  
Vol 67 (4) ◽  
pp. 673-692 ◽  
Author(s):  
Miguel Pina e Cunha ◽  
Daniel Veiga Vieira ◽  
Arménio Rego ◽  
Stewart Clegg
Keyword(s):  
Performance Management ◽  
Design Methodology ◽  
Management Practices ◽  
Management Practice ◽  
Poor Performance ◽  
Content Type ◽  
Key Issues ◽  
Increase Productivity ◽  
Practical Implications

Purpose The purpose of this paper is to ask why poor performance management practices persist in Portugal, in the middle of claims to increase productivity. Design/methodology/approach An inductive micro-practice analysis is used to understand barriers to management practice that do not require massive institutional changes. Findings The practice of performance management in Portugal typically displays three weaknesses: (1) insufficient planning (2) process and integrity issues, and (3) a non-meritocratic logic. Research limitations/implications The paper discusses the important topic of persistence of bad practices, showing how institutionalized patterns might be difficult to eradicate even they are suboptimal. Practical implications The authors identity key issues in the functioning of performance management, therefore helping managers in developing remedies to improve the quality of their practice. Originality/value The paper explains the persistence of bad management practice whose continuity hinders not only organizations’ effectiveness but also that of their members.

scholarly journals Gendered experiences of leading and managing through COVID-19: patriarchy and precarity

2020 ◽  
Vol 35 (7/8) ◽  
pp. 737-744
Author(s):  
Sharon Mavin ◽  
Marina Yusupova
Keyword(s):  
Business School ◽  
Women Managers ◽  
Design Methodology ◽  
Content Type ◽  
Research Associate ◽  
Personal Experiences ◽  
Woman Professor ◽  
Key Issues ◽  
The Uk ◽  
Practical Implications

Purpose The purpose of this paper is to highlight key issues for women managers, leaders and precarious academic women during COVID-19 in organisations and in academy. Design/methodology/approach This paper shares the authors’ personal experiences during COVID-19 in the UK as a woman Professor and Director of a Business School and a woman Research Associate and link these with existing scholarship to reflect on areas for continued research and action. Findings This paper underlines how COVID-19 destabilises the progress made towards gender equality. Practical implications This paper outlines future avenues for research and practice as a result of experiences of COVID-19. Originality/value This paper looks at the gendered implications of COVID-19 for women across organisational hierarchies and highlights commonalities in their experiences and devastating effects of the pandemic.

Improving internal service: identifying the roles of employee proficiency, adaptivity and proactivity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Scott Martin ◽  
Richard Klimoski ◽  
Alexandra Henderson
Keyword(s):  
Design Methodology ◽  
Efficient Manner ◽  
Content Type ◽  
Internal Customers ◽  
Specific Dimension ◽  
Employee Behaviors ◽  
Professional Employees ◽  
Willingness To Help ◽  
Practical Implications

PurposeThe purpose of this study was to determine the roles of employee proficiency, adaptivity and proactivity in predicting different aspects of internal service.Design/methodology/approachManagers evaluated 142 professional employees on proficiency, adaptivity and proactivity and about six weeks later 2–3 internal customers evaluated each of the employees on dimensions of internal service, namely reliability (i.e. performing dependably and accurately), assurance (i.e. knowledge, courtesy, and the ability to inspire trust and confidence), responsiveness (i.e. willingness to help customers and provide prompt service) and empathy (i.e. caring and providing individualized attention).FindingsEmployee proficiency and proactivity were the main predictors of delivering reliable services. Employee proficiency was the main predictor for creating a sense of assurance. Employee adaptivity was the main predictor of being viewed as responsive. Employee proactivity was the main predictor for establishing a sense of empathy.Practical implicationsIn a given situation, some aspects of internal service will be more important than others. The results will enable organizations to improve internal service in a more effective and efficient manner by developing interventions that are targeted at the specific dimension of interest.Originality/valueThe authors identified the types of employee behaviors that are likely to be most effective in impacting different aspects of internal service.

Older entrepreneurship: a literature review and research agenda

2019 ◽  
Vol 13 (1/2) ◽  
pp. 178-195
Author(s):  
Vanessa Ratten
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Design Methodology ◽  
Future Research ◽  
Ageing Population ◽  
Content Type ◽  
More Care ◽  
Key Issues ◽  
Changing Demographics ◽  
Practical Implications

Purpose Mature age or older entrepreneurship is an understudied but important area of research due to the ageing population and changing demographics in society. The purpose of this study is to review the literature about older entrepreneurship to understand the gaps and areas that need more attention. Design/methodology/approach A systematic literature review was undertaken and then the content was analyzed according to main themes. The key issues currently discussed about older entrepreneurship are stated, which leads to a number of future research suggestions. Findings The findings involve the need to take more care in how to define and conceptualize older entrepreneurship and to undertake more studies that have an older sample in general entrepreneurship research. Research limitations/implications The systematic literature review highlights the gaps in the literature about older entrepreneurs that need to be addressed in future research. Practical implications The paper provides some suggestions about how older people can be more involved in entrepreneurship. Originality/value This study contributes to the emerging literature about older entrepreneurship by providing an overview and directions for the future.

scholarly journals Interest-free microfinance in India: a case study of Bait-un-Nasr Urban Cooperative Credit Society

2019 ◽  
Vol 11 (2) ◽  
pp. 322-337
Author(s):  
Wasiullah Shaik Mohammed ◽  
Khalid Waheed
Keyword(s):  
Growth And Development ◽  
Design Methodology ◽  
Secondary Data ◽  
Primary Data ◽  
Content Type ◽  
Industry Standards ◽  
Key Issues ◽  
Operational Issues ◽  
Practical Implications

Purpose The purpose of this paper is to understand interest-free microfinance practices in India, identify issues and recommend possible solutions. Design/methodology/approach To achieve the proposed objectives, Bait-un-Nasr (BuN) Urban Cooperative Credit Society, located in Mumbai, India, is considered for the case study. The study is based on both primary and secondary data. The primary data are collected through questionnaires and secondary data from various sources. Performance of the institution is assessed in terms of growth and sustainability indicators. Findings It is found that BuN has been successful in providing interest-free microfinance services in India. A few operational issues have been highlighted and possible solutions are recommended. Moreover, it is found that in comparison to the microfinance industry standards, the performance of BuN has been lower. Research limitations/implications BuN is evaluated from only growth and sustainability aspects and not from the aspect of the socio-economic impacts of its services on the lives of customers. Practical implications This study would become a documented source of interest-free microfinance practices in India. Moreover, the recommendations provided, if implemented, would help BuN in further growth and development. Social implications This study would help create awareness in the society about the practices of interest-free microfinance. Originality/value This paper highlights the interest-free microfinance practices in India that have not received the needed attention. The paper also attempts to identify key issues pertaining to interest-free microfinance with possible solutions.

Instruments for investment protection when structuring Islamic venture capital

2020 ◽  
Vol 11 (9) ◽  
pp. 1907-1920
Author(s):  
Abdul-Jalil Ibrahim ◽  
Monzer Kahf
Keyword(s):  
Venture Capital ◽  
Design Methodology ◽  
Secondary Data ◽  
Financial Inclusion ◽  
Islamic Finance ◽  
Content Type ◽  
Investment Protection ◽  
Potential Value ◽  
New Ideas ◽  
Practical Implications

Purpose This paper aims to explore how Sharīʿah-compliant instruments can be used to protect investments and attract investors to Islamic venture capital (IVC). Equity investments in Islamic finance are trailing behind their potential value. This is partly due to the limited instruments available to protect investors, as most of the tools used in conventional venture capital (VC) are deemed Sharīʿah non-compliant. Design/methodology/approach The research amends and uses Wright Robbie’s (1998) VC structure and how it can be used to finance small and medium-sized enterprises (SMEs). The study uses secondary data reported in the literature and the expertise of the Sharīʿah scholarship. Findings There are Sharīʿah-compliant instruments available for IVC that can be used to protect investments and incentivize potential investors to promote investments in SMEs. At the various stages of the IVC process, preference shares, perpetual mudharabah, diminishing musharakah, musharakah with murabahah, musharakah with qard, negligence clauses, liquidation preference, warrants and supermajority clauses can all be used with appropriate conditions to protect investors and offer incentives for them to invest in IVC. Practical implications The research provides a method for screening and evaluating potential deals for SMEs using an amended VC called an IVC scheme with a focus on Sharīʿah-compliant investment protection instruments. The method can promote SMEs and entrepreneurship and financial inclusion for Sharīʿah-compliant investors. Originality/value This study contributes new ideas to how IVC can be structured, taking into consideration Sharīʿah constraints. The paper addresses investors’ protection and incentives to attract Sharīʿah-compliant investors, which have been lacking in the literature.

Transparency in eVoting

2014 ◽  
Vol 8 (2) ◽  
pp. 171-184 ◽  
Author(s):  
Alexander Prosser
Keyword(s):  
Supreme Court ◽  
Design Methodology ◽  
Constitutional Court ◽  
Security Framework ◽  
Content Type ◽  
Key Issues ◽  
German Constitutional Court ◽  
Supreme Court Rulings ◽  
Core Issues ◽  
Practical Implications

Purpose – The purpose of this study is to present and discuss some core issues regarding the transparency of the eVoting process. Apart from the protection of voting secrecy, the possible manipulation of votes, even of the entire election, is one of the key issues in eVoting. Comparatively few Supreme Court rulings are available for eVoting, as it is a new field. Where there are rulings available, they often focus on the case at hand and do not derive general principles. On 3 March 2009, the German Constitutional Court published a ruling on the use of voting terminals[1] from which also general principles can be derived far beyond the case itself. Design/methodology/approach – Apart from the protection of voting secrecy, the possible manipulation of votes, even of the entire election, is one of the key issues in eVoting. Comparatively few Supreme Court rulings are available for eVoting, as it is a new field. Where there are rulings available, they often focus on the case at hand and do not derive general principles. On 3 March 2009, the German Constitutional Court published a ruling on the use of voting terminals[1] from which general principles can also be derived far beyond the case itself. Findings – The paper presented some core issues in eVoting transparency as required by the ruling of the German Constitutional Court. In particular, it suggested a way to define and operationalise the terms “audit chain”, “count” and “recount”, which arguably represent the core issues in eVoting transparency and auditability. Furthermore, the paper introduced a model to map the key security dimensions in an eVoting system and the degree to which they are fulfilled by technical, not just organisational, means, with auditability being the dimension discussed in this contribution. Research limitations/implications – The paper only considers political elections and starts off the framework and requirements set by the German Constitutional Court. With one exception, these requirements can be seen as rather generic for most Western-style democracies, the exception being observability and auditability of the election by the general public. Practical implications – The paper derives concrete design principles for remote eVoting systems. Originality/value – The paper develops a security framework for remote eVoting from given legal requirements. After an analysis of popular existing eVoting protocols, a generic eVoting protocol is derived satisfying these requirements.

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