NiklasJames.com

Non-Circumvention for Investors

NDAs with prospective investors should include a non-circumvention provision.

I have sadly seen it happen twice that a (larger, institutional) investor bypasses the sponsor and steals their deal. A non-circumvention should protect against this.

Whether you should actually file a lawsuit against a capital provider for breaching a non-circumvention is, of course, a bigger question. Sponsors are poorly equipped to engage in a legal battle. Even if you have the legal arguments on your side, there is reputational risk and it will take a lot of time, money, and pain to reach a resolution.

About the author

Hi, Niklas here 🙂📝

This is my journey as an independent sponsor & equity investor.

I publish tactical insights for deal-by-deal private equity.

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