Research Handbook on the Structure of Private Equity and Venture Capital

Edited by Brian Broughman, Law School, Vanderbilt University and Elisabeth de Fontenay, Law School, Duke University, USA

• ContentsIntroduction xPART I ORGANIZATION OF PE/VC FUNDS1 Private equity fund bargaining: What we know (and don’t know) 2William W. Clayton2 Time to shrink the “disclosure gap” between private and public equity markets 19Peter Morris and Ludovic Phalippou3 International tax implications for private equity investments 42Young Ran (Christine) Kim 4 U.S. taxation of private equity and venture capital 65Gregg D. PolskyPART II PE/VC TRANSACTIONS – INVESTMENTS AND EXITS5 Going public with IPOs and SPAC mergers 79Rongbing Huang, Jay R. Ritter, and Donghang Zhang6 Legal innovation in Chinese venture capital and private equity contracts 122Lin Lin7 Musk & Twitter: A case study in private equity and contractual certainty 137Cathy Hwang and Steven Davidoff Solomon8 The evolution of China’s venture capital and private equity markets 158Mark Humphery-Jenner and Jo-Ann Suchard9 The challenges facing venture capital in digital asset markets 176Khalil Bryant and Yesha Yadav10 Equity dilution in venture capital finance after Brookfield Asset Mgmt., Inc. v. Rosson 203Robert BartlettPART III GOVERNANCE AND CONTROL OF PORTFOLIO COMPANIES11 A decade of Trados 224Abraham J.B. Cable12 Dual-class IPOs: A solution to unicorn governance failure 238Ofer Eldar13 The RSU time bomb: Regulating startup equity compensation in the unicorn era 257Yifat Aran14 Dynamic views of startup governance and failure 276Elizabeth PollmanPART IV IMPACT OF PE/VC ON PORTFOLIO COMPANY OPERATIONS15 From Wall Street to work floor: How private equity buyouts affect workers 292Martin Olsson and Joacim Tåg16 Antitrust, private equity, and venture capital 305Matthew T. Wansley and Samuel N. Weinstein17 Does private equity create or destroy value? Analysis of post-buyout outcomes and defaults 333Edith HotchkissPART V REGULATION ENABLING OR CONSTRAINING PE/VC18 Bankruptcy team sports and the private equity playbook 344Kenneth Ayotte and Jared A. Ellias19 Mandatory corporate law as an obstacle to venture capital contracting in Europe: Implications for markets and policymaking 360Luca Enriques, Casimiro A. Nigro, and Tobias H. Tröger20 Venture capital litigation 388Kate Litvak