Sindhuja Kashyap Highlights the Critical Role of Special Rights for Private Equity Investors in a Moneycontrol.com article

In a recent article published on Moneycontrol, Sindhuja Kashyap provided insightful commentary on why these rights are indispensable for the protection and strategic alignment of PE investments.

“Special rights provide PE investors with control over key company decisions, protective provisions that safeguard their investment, ensuring their investment is managed in a way that aligns with their strategic objectives,” said Kashyap.

This statement highlights the essence of why special rights are a cornerstone in PE investment agreements. These rights empower investors to influence major company decisions, such as approving budgets, altering business strategies, and making significant financial commitments. Without such control, PE investors risk misalignment between their strategic goals and the company’s direction.

Sindhuja further elaborated on the risks of losing these rights: “If these special rights are taken away, PE investors lose their ability to influence key decisions and protect their interests, potentially leading to decisions that could negatively impact their investment, making them no different than a shareholder with minimum risk in the company.”

Link to coverage: https://www.moneycontrol.com/news/business/pe-investors-will-need-to-forgo-special-rights-in-ipo-bound-cos-without-certainty-of-exit-12747976.html