Search Fund Economics.pdf


Preview of PDF document search-fund-economics.pdf

Page 1 23415

Text preview


3UHIHUUHGHTXLW\±7KHUHDUHPDQ\YDULDWLRQVDQGWKHUHIRUHURRPIRUFUHDWLYLW\LQVWUXFWXULQJSUHIHUUHG
HTXLW\  3UHIHUUHG HTXLW\ LV MXQLRU WR DOO GHEW VHFXULWLHV EXW VHQLRU WR FRPPRQ HTXLW\  ,Q VHDUFK IXQGV
SUHIHUUHGHTXLW\LVPRVWRIWHQLVVXHGDVSDUWLFLSDWLQJSUHIHUUHGVWRFN

x

Preferred stockRIIHUVWKHKROGHUWKHULJKWWR%27+ D WKHLQLWLDOYDOXHSOXVDFFXPXODWHGDQG
XQSDLGSUHIHUUHGGLYLGHQGV LIDQ\ 3/86 E SHUFHQWRIWKHFRPPRQHTXLW\OHVVYHVWHG
0DQDJHU(TXLW\ GHVFULEHGEHORZ XSRQVDOHRUOLTXLGDWLRQ3UHIHUUHGVWRFNFDQEHLVVXHGDV
UHGHHPDEOHSUHIHUUHGVWRFNRUQRQUHGHHPDEOHSDUWLFLSDWLQJSUHIHUUHGVWRFN

x Redeemable preferred stock FDQ EH UHGHHPHG LQ ZKROH RU LQ SDUW SULRU WR D VDOH
UHFDSLWDOL]DWLRQRUOLTXLGDWLRQ2QFHUHGHHPHGWKHUHGHHPDEOHSUHIHUUHGVWRFNKDVQR
IXUWKHUSDUWLFLSDWLRQ

x Nonredeemable participating preferred stock FDQQRW EH UHGHHPHG SULRU WR D VDOH
UHFDSLWDOL]DWLRQRURWKHUOLTXLGLW\HYHQWDVGHILQHGE\WKHWHUPVRIWKHDJUHHPHQW


)RUWKHVDNHRIVLPSOLFLW\WKHIROORZLQJDQDO\VLVIRFXVHVRQWZRSRWHQWLDOVWUXFWXUHVRILQYHVWRUFDSLWDO
x

6WUXFWXUH  )RU HYHU\  RI ,QYHVWRU &DSLWDO  EX\V 1RQUHGHHPDEOH 3DUWLFLSDWLQJ 3UHIHUUHG
6WRFNZLWK3UHIHUUHG5HWXUQ XVXDOO\a 

x

6WUXFWXUH)RUHYHU\RI,QYHVWRU&DSLWDOEX\VUHGHHPDEOHSUHIHUUHGVWRFNDQG
EX\VQRQUHGHHPDEOHSDUWLFLSDWLQJSUHIHUUHGVWRFN
x
x

6HULHV$5HGHHPDEOH3UHIHUUHG6WRFN aFRXSRQ 
6HULHV%1RQUHGHHPDEOH3DUWLFLSDWLQJ3UHIHUUHG6WRFNZLWK1R&RXSRQ a 
L 0DQDJHU(TXLW\FRPHVLQWKHIRUPRI&RPPRQVKDUHVWKDWSDUWLFLSDWHZLWKWKH
6HULHV%1RQUHGHHPDEOH3DUWLFLSDWLQJ3UHIHUUHG6WRFN

6WUXFWXUHDQG6WUXFWXUHFDQEHVXEVWDQWLDOO\HTXLYDOHQWDWFHUWDLQLQWHUHVWUDWHVDQGSUHIHUUHGUHWXUQV
6RZK\FKRRVHRQHVWUXFWXUHRUWKHRWKHU"+LVWRULFDOO\DVWUDGLWLRQDOSULYDWHHTXLW\IXQGVPRYHGLQWRWKH
VHDUFKIXQGVSDFHWKH\VWDWHGDSUHIHUHQFHIRU6WUXFWXUH+RZHYHUPDQ\KLJKQHWZRUWKLQGLYLGXDOVRU
VHDUFK IXQG IRFXVHG LQYHVWPHQW ILUPV ZLWK H[WHQVLYH VHDUFK IXQG LQYHVWPHQW RU RSHUDWLQJ H[SHULHQFH
RIWHQSURSRVH6WUXFWXUHDVDQRWKHUYLDEOHDOWHUQDWLYH,QWKHUHFHQWSDVWDSSUR[LPDWHO\SHUFHQWRI
GHDOVKDYHEHHQGRQHZLWK6WUXFWXUHDWWKHHOHFWLRQRIWKHVHDUFKIXQGHQWUHSUHQHXU
7KHDGYDQWDJHVGLVDGYDQWDJHVRIHDFKVWUXFWXUHIRUWKHLQYHVWRUDQGWKHHQWUHSUHQHXUDUHGHSLFWHGLQWKH
IROORZLQJFKDUW



24