(Private equity firms and related-party transactions) Abstract

Nº 4 / 2021 - octubre-diciembre

(Private equity firms and related-party transactions)

Nuria Latorre Chiner
Universitat de Valencia


The participation of private equity & venture capital firms in the decision-making processes of target companies becomes a related-party transactions issue when two companies in which the same venture capital firm has an interest enter into a contract with each other and this contract is predicated on the significant influence and position that the venture capital firm has in their respective decision-making bodies.
This paper will focus on providing detailed knowledge on the regulatory framework applicable to related-party transactions, as transactions that imply a conflict of interest and require the parties involved in the decision-making processes to observe certain
duties of loyalty.

Keywords: related-party transactions, director, significant shareholder, proprietary director, conflicts of interests, duty of abstention, intragroup transactions.