Government co-financed "Hybrid" Venture Capital Programmes (4)

Buy-put option for private investors in New Zealand Venture Investment Fund

Information

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Unit 1B, Ascot Office Park, 93-95 Ascot Ave Greenlane, Auckland
NZ New Zealand
Web http://www.nzvif.co.nz/
Maturity

Concept

About the project Edit

In this hybrid VC Fund initiative, private investors are given the option to buy the share of the government at (or until) a specific point of time at predetermined price (typical nomincal price + interest).

In what ways is this project unique and creative? Edit

The effects on the rate of return of private investors (Limited Partners) are similar to the "capped return" structure.

However, there are 2 additional benefits:
1) the buy-out option gives both the public and the private investors (LP) an opportunity to demonstrate success earlier and more visibly than in the capped return alternative

2) in the case of success, government gets a quick exit from the Fund and can reinvest the money instead of waiting for the returns on fund termination (usually 10 years).

What is the social value of this project? Edit

What is the potential of this project to expand and develop? Edit

What was the triggering factor of this project? Edit

What is the business model of this project? Edit

A governement financial improvement, without the governing inside ?...


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