Aphrodite Partners versus Cashmine Capital Partners: Regulation Attempts in a Private Industry

Description

This case deals with transparency and disclosure policies of GPs in the interaction with their investor base and serves as a discussion base for the question, whether Fund management activities in Private Equity should be subject to higher scrutiny and/or financial market regulation. The case projects this industry four years into the future, inviting students to suggest possible conclusions from the ongoing debate on higher regulatory oversight of the private equity industry which currently takes place both in the US and Europe. The case also serves as discussion base on a) the dynamics that can be created by individual investor behavior in interaction with the fund manager and co-investors, b) how this potentially may jeopardize the interest of a patnership and c) how this compares to the effectiveness of contractual downside protection for investors in Partnership agreements.

Keywords

Accounting policies Auditing Company Valuation ethics Financial ratios Market Regulations Venture capital