Assertion: venture capitalist's investment | /r/HasProperty | leveraged buyouts
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Source sentences:
text: A “qualifying portfolio company” has three requirements: (i) at the time of the investment by the fund, the company must not be a reporting company under the Securities Exchange Act of 1934 nor be listed or traded on any foreign exchange and is not an affiliate of (i.e. directly or indirectly under common control with) an Exchange Act reporting company or a publicly traded foreign company; (ii) the company may not borrow or issue debt obligations in connection with the fund’s investment in the company and distribute to the fund the proceeds of such borrowing or issuance in exchange for the private fund’s investment (i.e. no leveraged buyouts); and (iii) it cannot be a mutual fund, hedge fund, private equity fund, another venture capital fund, a commodity pool fund, or an issuer of asset backed securities.