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Private Equity Expert

The Private Equity Expert agent specializes in PE/VC relations, deal structures, term negotiations, due diligence processes, and institutional investor dynamics.

Expertise Areas#

  • Investor Types - Angels through growth equity
  • Term Sheet Analysis - Economic and control terms
  • Due Diligence Preparation - Data room organization
  • Negotiation Tactics - Deal negotiation strategies
  • Investor Relations - Post-investment management

Usage Examples#

Investor Landscape#

Use the private-equity-expert agent to understand the different types of investors and their expectations.

Response includes:

  • Investor categories
  • Check sizes
  • Stage focus
  • Decision timelines

Term Sheet Review#

Use the private-equity-expert agent to analyze a term sheet and identify key negotiation points.

Response includes:

  • Economic terms breakdown
  • Control provisions analysis
  • Red flags identification
  • Negotiation priorities

Due Diligence#

Use the private-equity-expert agent to prepare a due diligence data room.

Response includes:

  • Document checklist
  • Organization structure
  • Common requests
  • Preparation timeline

Best Practices Applied#

1. Deal Preparation#

  • Clean cap table
  • Organized data room
  • Clear financials
  • Strong metrics

2. Negotiation#

  • Know your BATNA
  • Focus on key terms
  • Trade strategically
  • Document everything

3. Due Diligence#

  • Proactive preparation
  • Quick turnaround
  • Transparent disclosure
  • Professional presentation

4. Relationship Management#

  • Regular communication
  • Leverage expertise
  • Build trust
  • Deliver on commitments

Common Patterns#

Investor Types#

1## Investor Landscape 2 3### Angel Investors 4- **Check Size**: $10K - $250K 5- **Stage**: Pre-seed, Seed 6- **Value Add**: Mentorship, intros 7- **Decision Speed**: Fast (days-weeks) 8 9### Seed Funds 10- **Check Size**: $250K - $2M 11- **Stage**: Pre-seed, Seed 12- **Value Add**: Initial scaling help 13- **Decision Speed**: 2-6 weeks 14 15### Series A VCs 16- **Check Size**: $5M - $15M 17- **Stage**: Seed, Series A 18- **Value Add**: Scaling expertise, recruiting 19- **Decision Speed**: 4-12 weeks 20 21### Growth Equity 22- **Check Size**: $25M - $200M+ 23- **Stage**: Series B+ 24- **Value Add**: Operational expertise 25- **Decision Speed**: 8-16 weeks 26 27### PE Firms 28- **Check Size**: $100M+ 29- **Stage**: Late stage, buyouts 30- **Value Add**: M&A, governance 31- **Decision Speed**: 12-24 weeks

Term Sheet Analysis#

1## Economic Terms 2 3**Liquidation Preference** 4| Type | Description | Founder Friendly | 5|------|-------------|------------------| 6| 1x Non-participating | Get $ back OR share | Best | 7| 1x Participating | Get $ back AND share | Careful | 8| 2x+ Participating | Get 2x$ AND share | Avoid | 9 10**Anti-Dilution** 11| Type | Description | 12|------|-------------| 13| Weighted Average | Standard, fair | 14| Full Ratchet | Aggressive, avoid | 15 16**Option Pool** 17- Typically 10-20% for Series A 18- Created from pre-money (dilutes founders) 19 20## Control Terms 21 22**Board Composition** 23- Seed: 3 seats (2 founders + 1 investor) 24- Series A: 5 seats (2 founders + 2 investors + 1 independent) 25 26**Protective Provisions** 27Standard (acceptable): 28- Change charter/bylaws 29- Issue senior securities 30- Sell company 31- Incur major debt 32 33Aggressive (negotiate): 34- Approve annual budget 35- Hire/fire executives 36- Enter new business lines

Data Room Organization#

1## Due Diligence Data Room 2 3### Corporate 4- [ ] Certificate of incorporation 5- [ ] Bylaws 6- [ ] Board meeting minutes 7- [ ] Stockholder agreements 8- [ ] Cap table (Carta export) 9 10### Financial 11- [ ] Historical financials (3 years) 12- [ ] Current year budget 13- [ ] Financial projections 14- [ ] Bank statements (12 months) 15- [ ] Revenue by customer 16 17### Legal 18- [ ] Material contracts 19- [ ] Customer agreements (template + key) 20- [ ] IP assignments 21- [ ] Litigation (if any) 22- [ ] Insurance policies 23 24### HR 25- [ ] Org chart 26- [ ] Employment agreements 27- [ ] Option grants 28- [ ] Employee handbook 29 30### Product/Tech 31- [ ] Architecture documentation 32- [ ] Security practices 33- [ ] Third-party audit reports 34- [ ] Compliance certifications 35 36### Commercial 37- [ ] Customer list with ARR 38- [ ] Churn analysis 39- [ ] Sales pipeline 40- [ ] Key customer contracts

Negotiation Strategy#

1## Negotiation Best Practices 2 3### Before Negotiation 41. Know your BATNA (Best Alternative) 52. Understand market terms 63. Prioritize what matters most 74. Get multiple term sheets if possible 8 9### Key Leverage Points 10| Your Leverage | Their Leverage | 11|---------------|----------------| 12| Multiple offers | Proprietary access | 13| Strong metrics | Brand/network value | 14| Hot market | Capital availability | 15| Profitability | Board expertise | 16 17### What to Negotiate 18| Worth Fighting | Less Important | 19|----------------|----------------| 20| Valuation | Drag-along threshold | 21| Board composition | Pro-rata rights | 22| Option pool size | Information rights | 23| Vesting schedules | Founder lockup | 24 25### Red Lines (Walk Away) 26- Participating preferred >1x 27- Full ratchet anti-dilution 28- Founder vesting restart 29- Unreasonable control provisions

Sample Prompts#

TaskPrompt
Investors"Explain the different types of investors for our stage"
Term sheet"Analyze this term sheet and identify concerns"
Data room"Create a due diligence preparation checklist"
Negotiation"What should we negotiate in our Series A term sheet?"
Cap table"Help us understand our post-money cap table"

Configuration#

1// bootspring.config.js 2module.exports = { 3 agents: { 4 customInstructions: { 5 'private-equity-expert': ` 6 - Focus on founder-friendly terms 7 - Explain institutional dynamics 8 - Prepare for due diligence 9 - Balance negotiation with relationships 10 - Consider long-term implications 11 `, 12 }, 13 }, 14 fundraising: { 15 stage: 'series-a', 16 focus: 'vc', 17 }, 18};

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