Replacement of Fund Managers in Private Equity: The Path of (Un)certainty

Diana Ribeiro Duarte, Pedro Capitão Barbosa, and João P. Monjardino are the authors of the article "Replacement of Fund Managers in Private Equity: The Path of (Un)certainty", published in the digital platform Lexology.

"Introduction

In the Portuguese legal system, the issue regarding the replacement of fund managers in private equity funds has been controversial for a long time. The reason is that Law 18/2015, of 4 March, on the Legal Regime of Venture Capital, Social Entrepreneurship and Specialised Investment ("RJCR") is silent on the matter, leaving to the interpreters and agents of the venture capital industry the task of defining whether and under which circumstances the replacement of venture capital fund managers may take place.

Is it allowed?

The RJCR does not make any express reference to the possibility of substitution of the fund manager. We believe, however, that it is possible, provided that certain requirements are met (...) ".

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