Capital Markets Union and private equity / venture capital divestment via IPO

Capital Markets Union and private equity / venture capital divestment via IPO

Abstract:

The present article discusses the Action Plan on Building a Capital Markets Union approved by the EU Commission from the perspective of promoting corporate financing by means of securities offerings (for sale of securities) in EU primary markets.
In this context, legal reforms provided under the Prospectus Regulation Proposal are under analysis to decrease regulatory entry barriers; especially, regarding its potential impact on divestment strategies implemented by venture capital / private equity investors.

Keywords: Venture capital, private equity, Initial Public Offering, securities offering (sale), primary market, securities regulation, Directive 2003/71/EC, Prospectus Regulation.