Venture Capital General Partner Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Venture Capital General Partner Agreement

"I need a Venture Capital General Partner Agreement for a new Saudi-based tech-focused fund launching in March 2025, which needs to accommodate both local and international investors while ensuring Shariah compliance and including co-investment rights for the GP team."

Document background
The Venture Capital General Partner Agreement is a fundamental document used when establishing and operating a venture capital fund in Saudi Arabia. It serves as the primary governance document defining the General Partner's role, responsibilities, and economic arrangements in managing the fund. This agreement must comply with Saudi Arabian Companies Law, Capital Market Authority regulations, and Shariah principles, making it distinct from similar agreements in non-Islamic jurisdictions. The document is typically implemented when launching a new fund or restructuring an existing one, and includes detailed provisions for management fees, carried interest, investment criteria, reporting obligations, and governance structures. It's essential for establishing clear lines of authority, risk management procedures, and compliance requirements while protecting both the GP's and investors' interests within the Saudi legal framework.
Suggested Sections

1. Parties: Identification of the General Partner entity, management company, and other key parties

2. Background: Context of the agreement, including fund structure and purpose

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Appointment and Authority: Formal appointment of the General Partner and scope of authority

5. Duties and Responsibilities: Detailed obligations of the General Partner in managing the fund

6. Management Fee and Compensation: Structure of management fees, carried interest, and other compensation

7. Investment Strategy and Restrictions: Permitted investments, restrictions, and investment criteria

8. Governance and Decision Making: Management structure, voting rights, and key person provisions

9. Compliance and Reporting: Regulatory compliance, reporting obligations, and record-keeping requirements

10. Shariah Compliance: Specific provisions ensuring compliance with Islamic financial principles

11. Term and Termination: Duration of agreement, renewal provisions, and termination circumstances

12. Liability and Indemnification: Scope of liability, limitations, and indemnification provisions

13. Confidentiality: Protection of confidential information and trade secrets

14. General Provisions: Standard legal provisions including notices, amendments, and governing law

Optional Sections

1. Co-Investment Rights: Terms for co-investment opportunities, used when GP has rights to co-invest alongside the fund

2. Multiple Strategy Provisions: Additional provisions for managing multiple investment strategies, used for multi-strategy funds

3. Foreign Investment Provisions: Specific provisions for foreign partners or investments, used when foreign entities are involved

4. Key Person Insurance: Requirements for life/disability insurance on key persons, used when required by investors

5. Succession Planning: Detailed succession procedures, used for larger firms or at investor request

6. Environmental, Social and Governance (ESG): ESG investment criteria and reporting, used when required by investors or strategy

7. Conflicts Committee: Structure and operation of conflicts committee, used in larger firms with multiple funds

Suggested Schedules

1. Schedule 1: Fee Structure: Detailed calculation methodology for management fees and carried interest

2. Schedule 2: Investment Guidelines: Detailed investment criteria, restrictions, and concentration limits

3. Schedule 3: Valuation Policy: Methodology for valuing investments and calculating NAV

4. Schedule 4: Reporting Requirements: Templates and requirements for regular reporting to investors

5. Schedule 5: Key Persons: List of key persons and their commitments to the fund

6. Schedule 6: Shariah Guidelines: Detailed Shariah compliance requirements and prohibited investments

7. Appendix A: Power of Attorney: Formal delegation of authority to the General Partner

8. Appendix B: Compliance Manual: Detailed compliance procedures and requirements

9. Appendix C: Form of Conflicts Disclosure: Template for disclosing potential conflicts of interest

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Venture Capital

Private Equity

Investment Management

Professional Services

Technology

Healthcare

Real Estate

Islamic Finance

Consulting

Relevant Teams

Legal

Compliance

Investment

Risk Management

Finance

Operations

Administrative

Corporate Governance

Executive Leadership

Investor Relations

Relevant Roles

Managing Partner

General Partner

Chief Executive Officer

Chief Investment Officer

Fund Manager

Legal Counsel

Compliance Officer

Risk Manager

Investment Director

Chief Financial Officer

Portfolio Manager

Managing Director

Partner

Shariah Advisor

Board Member

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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