Private Equity Investment Agreement Template for Singapore

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Key Requirements PROMPT example:

Private Equity Investment Agreement

"I need a Private Equity Investment Agreement under Singapore law for a Series B investment of $10M into a healthcare technology company, with specific provisions for board representation and anti-dilution protection, to be completed by March 2025."

Document background
The Private Equity Investment Agreement is a crucial document used when institutional investors or private equity funds make significant investments in private companies in Singapore. It outlines the investment structure, shareholder rights, corporate governance arrangements, and exit mechanisms while ensuring compliance with Singapore's regulatory requirements. The agreement typically includes detailed provisions on share subscription, anti-dilution protection, board representation, information rights, and transfer restrictions, tailored to meet both the investor's requirements and local regulatory standards.
Suggested Sections

1. Parties: Identification of the investor(s) and investee company

2. Background: Context of the investment and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Investment Terms: Details of investment amount, share class, and pricing

5. Conditions Precedent: Prerequisites before investment completion

6. Completion Mechanics: Process and timing of investment completion

7. Warranties and Representations: Standard assurances from both parties

8. Governance Rights: Board composition and voting rights

9. Exit Provisions: Terms for future sale or IPO

Optional Sections

1. Anti-dilution Protection: Protection mechanisms for investors against future down rounds, typically used in early-stage investments with high valuation risk

2. Tag-Along Rights: Provisions allowing minority investors to join in sale of shares by other shareholders, used for minority investor protection

3. Drag-Along Rights: Provisions allowing majority investors to force other shareholders to join in sale, used when majority investors want exit flexibility

4. ROFR/ROFO: Rights of first refusal/offer on future share sales, used when parties want control over future ownership

Suggested Schedules

1. Capitalization Table: Pre and post-investment shareholding structure

2. Warranties Schedule: Detailed company warranties

3. Corporate Information: Company details, directors, and key contracts

4. Business Plan: Company's strategic plan and financial projections

5. Form of Share Certificate: Template for new share certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Companies Act (Cap. 50): Primary legislation governing company formation, management, capital structure, share issuance/transfers, and directors' duties and shareholders' rights in Singapore

Securities and Futures Act (Cap. 289): Regulates securities offerings, trading, disclosure requirements, and investor protection provisions in Singapore

Application of English Law Act: Provides the foundation for Singapore contract law, incorporating English common law principles of contract formation and enforcement

MAS Guidelines: Regulatory framework from Monetary Authority of Singapore covering licensing, registration, and conduct of business requirements for fund management companies

Competition Act (Cap. 50B): Governs merger control provisions and regulates anti-competitive behavior in Singapore business transactions

Income Tax Act: Outlines tax implications for investments and withholding tax requirements in Singapore

Personal Data Protection Act 2012: Establishes data privacy requirements and protection framework for handling investor information in Singapore

AML/CTF Requirements: Anti-Money Laundering and Counter-Terrorism Financing requirements including Know Your Customer (KYC) obligations and reporting requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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