Kapitalfonde: Fiktion eller fakta

Louise Thon Andersen

Student thesis: Master thesis

Abstract

In the recent years, Denmark has seen a rise in Private Equity (PE) investments. In theory, these types of investments should not present any reason for discussion. However, some critics do see many issues concerning PE Funds. One of the most essential issues is that these PE funds finance most of their investments through debt. Most often PE Funds are based or situated in tax heavens, which have a very low taxation on interest or none at all. This gives the investors the opportunity to place their debt raised in connection with the purchase of the target Company in Denmark and thereby exploit that they can deduct most of their interest payments, which leads to the investors having to pay fewer taxes, than what is often required in their home country. Another big point of discussion is, as the words “Private Equity” indicate, the PE funds are not legally required to deliver any information, this of course leads to many of the PE funds being very private in publishing any information and according to the critics this makes the PE Funds less transparent. Other people however are of the opposite perception, as they do not see any irregularities with concerning PE Funds. Nonetheless, the Danish Government is still eager to legislate on the PE area. In order to prevent further legislation and to enhance transparency, the Danish Venture Capital and Private Equity Association (DVCA) released a guidance book for good corporate governance last year, which they highly recommend the PE funds to follow. This however does not seem to impress the critics and politician Poul Nyrup Rasmussen has stated -“ I will not stop until our goal for more restrictive legislation has been realized“, which underline the fact, that the PE Funds might not avoid further legislation in the future. The above dispute has indeed evoked my interest as it has been the cause for a lot of discussion through out the recent years. In this paper, my aim is to examine the roots of the different point of views of discussion in order to analyze them and thereby find out if there are valid arguments for either sides of the story.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2009
Number of pages122