@article{zinecker2012private,
  title = {Private Equity and Venture Capital: Investment Fund Structures in Europe},
  author = {Marek Zinecker and Pavel Svirák and Monika Grebíková},
  year = 2012,
  url = {https://ibimapublishing.com/articles/JEERBE/2012/471840/},
  journal = {Journal of Eastern Europe Research in Business and Economics},
  volume = (2012),
  pages = 13,
  doi = 10.5171/2012.471840,
  abstract = {Suitable legal fund structures for private equity and venture capital (PE/VC) investments and their tax treatment have been considered as a key factor for stimulating the business environment. The Czech Venture Capital Association stresses that legal barriers are an important reason behind the limited scope of resources available to domestic PE/VC funds. Legal barriers prevent the establishment of a standard PE/VC fund in the territory of the Czech Republic, which fact in turn has a negative impact on the level of development of the domestic PE/VC market. In order to encourage the development of the market, this paper addresses filling the existing research gap concerning the following issues of the Czech PE/VC market: How the current Czech legislation regulates the legal fund structures for PE/VC investments? What is the tax treatment of PE/VC funds and individual investors in the Czech Republic? What are the legal and tax regulations on the main European markets for PE/VC? What are the key requirements for improvements of the current situation on the Czech PE/VC market? The nature of this study is explorative and it relies on primary and secondary data. Results of the study stress that the non-existence of the Limited Partnership legal form in particular is a weak spot of the current Czech legislation. The only Czech legal structure for PE/VC investments — the Qualified Investor Fund — does not sufficiently accommodate the requirements of market participants. Inadequate manner of market regulations can also be pointed out in addition to inflexible corporate law, tax obstructions and non-transparency of the current structures. In conclusion this study formulates proposals how to change the existing corporate law and the regulation of the PE/VC financial market segment in the Czech Republic. The proposals are based on models provided by selected European countries and create suitable conditions for a successful development of the Czech PE/VC market.},
  keywords = {Private Equity, Venture Capital, Tax and Legal Environment, Fund Structures, Tax Treatment.},
  note = Article ID: 471840
}