Document background
The Private Equity Investment Agreement is a crucial document used when a private equity investor seeks to make a significant equity investment in a target company in Australia. It serves as the primary transaction document that governs the relationship between the investor and the company, establishing clear rights, obligations, and protections for all parties involved. The agreement must comply with Australian corporate law, particularly the Corporations Act 2001, and may require consideration of foreign investment regulations (FIRB) for international investors. It typically includes detailed provisions on investment terms, governance rights, warranties, financial reporting requirements, exit mechanisms, and various protective provisions for investors. This document is essential for both institutional and individual investors making substantial equity investments in private companies, and it forms the foundation for the ongoing relationship between investors and the target company.
