Entrepreneurial Finance and Private Equity

Schedule of Assignments and Questions for Advanced Preparation

Fund Raising

Class # 1 – Monday, October 21, 2002

Case: Fox Venture: Enriching the Private Equity Investor Pool (9-296-041)

Reading: Legal Aspects of Financing the Emerging .Company With Venture Capital and Public Issues”, pp. 1-10 (UVA-F-1276)

Network File: Fox Venture Partners Ex 5.xls.

1. How does FOX Venture Partners propose to create value for its investor? Are their arguments plausible?

2. How much do Frazier and Lawrence charge for their services (see Exhibit 5)? What increment to performance would be required to justify their fees?

3. Would you invest in the FVP fund? Why have individual investors been reluctant to invest so far? Is the problem in the concept of the fund, or the way that Frazier and Lawrence have marketed the concept?

4. Why have venture capitalists been interested in having FVP as a potential investor? What explains their interest in having wealthy individuals as investors in their funds? Are Frazier and Lawrence’s hopes of having a broader impact on the private equity industry realistic?

5. More generally, when do intermediaries add value to private equity investing?