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Survey of the Nepal Private Equity and Venture Capital Environment (English)

This paper discusses the landscape for private equity and venture capital financing in Nepal. It provides an overview of the nascent private equity and venture capital market in the country, describing key players, including funds, fund managers, investors, and public sector entities. The paper provides an analysis of key market drivers and impediments, as well as legal/regulatory/taxation drivers and impediments that affect Nepal’s private equity and venture capital industry.


  • Author

    Divakaran,Shanthi, Lorenzato,Gianni, Upreti,Anup Raj, Dahal,Pratikshya

  • Document Date


  • Document Type

    Policy Research Working Paper

  • Report Number


  • Volume No


  • Total Volume(s)


  • Country


  • Region

    South Asia,

  • Disclosure Date


  • Disclosure Status


  • Doc Name

    Survey of the Nepal Private Equity and Venture Capital Environment

  • Keywords

    small and medium size enterprise; tax on interest income; early stage of development; access to technical assistance; collective investment scheme; venture capital fund; cash flow basis; public pension fund; global financial crisis; public limited company; certificate of deposit; private equity fund; subject to regulation; financial market participant; source capital; development finance institution; limited liability company; income tax rate; discounted cash flow; local stock market; corporate income tax; classes of shares; interest rate cap; company in default; delegation of authority; safeguards for investor; subject to taxation; Merger and Acquisitions; flow of capital; act of parliament; military and police; social security contribution; public sector entity; foreign direct investment; generation of electricity; net worth; mutual fund; Investment companies; insurance companies; institutional investor; private company; investee companies; foreign investor; legal structure; corporate structure; public company; corporate tax; asset class; government bond; capital gain; specific regulation; dividend tax; offshore investor; life insurance; incentive fee; Fund Size; limited partner; alternative investment; listed security; investment fund; investment income; bank deposit; investment environment; natural person; dividend distribution; investment committee; controlling shareholder; Exit Strategy; paid-up capital; initial capital; hydropower investment; conventional fund; tax policy; corporate entity; domestic fund; voting right; capital control; share price; manufacturing sector; severe consequence; loan facility; hedge fund; regulatory action; management fee; price band; regulatory oversight; stock exchange; corporate body; small fund; regional fund; insurance regulator; currency return; funds target; foreign capital; market size; market phase; sophisticated investor; business acceleration; religious purpose; management cost; portfolio level; unlisted security; external investor; Performance Standards; future investment; investment entry; market potential; investor confidence; private fund; financial return; industry list; Financial Stability; Retail Sector; fund management; efficient investment; saving investment; charitable trust; fee structure; industrial activity; tax purpose; partnership framework; legal restriction; portfolio composition; tax structure; voting arrangement; annual return; indian law; securities issue; adversely impact; valuation methodology; average price; premium price; public sale; commercial production; advanced economy; tobacco sector; tax break; tax provision; debt instrument; lending activities; financial instrument; overdue loan; financial matter; existing law; loan proceeds; corporate investor; resident investor; long-term investor; tax considerations; investor education; financial company; telecom sector; financial service; legal requirement; domestic retail; financial interest; trade volume; market cap; small economy; approval process; arbitrage opportunity; prices increase; approval system; investor demand; earnings ratio; local counsel; tax withholding; primary source; withholding tax; tax credit; tax treaty; tax rule; regulatory supervision; investment opportunities; management agreement; shareholder right; governance arrangement; institutional capital; limited partnership; permit flexibility; local company; common feature; board meeting; criminal matter; fiduciary obligation; maximum investment; investment mandate; sole power; portfolio investment; personal guarantee; mortgaged property; borrower default; debt obligation; bank note; regulated sectors; government institution; government approval; regulatory change; foreign entity; legal challenge; seed funding; seed capital; investment capital; liquid investment; investment criterion; prudential norm; fund investment; insurance fund; mature market; regulatory restriction; local funds; Real estate; informal investment; regulatory constraint



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Divakaran,Shanthi Lorenzato,Gianni Upreti,Anup Raj Dahal,Pratikshya

Survey of the Nepal Private Equity and Venture Capital Environment (English). Policy Research working paper,no. WPS 8672 Washington, D.C. : World Bank Group.