Document background
The Equity Commitment Agreement serves as a cornerstone document in corporate finance transactions under Dutch law, typically used in private equity investments, corporate restructurings, or project finance scenarios. This agreement is essential when an investor or group of investors commits to providing equity funding but the actual investment will occur at a future date or in phases. The document details the commitment amount, conditions for drawdown, representations and warranties, and the mechanics of the investment process. It must comply with Dutch corporate law requirements, including those related to share capital, corporate governance, and financial supervision. The agreement is particularly important in transactions where certainty of funding is crucial, such as in acquisition financing or project development. It often works in conjunction with other transaction documents such as share purchase agreements, shareholders' agreements, or facility agreements.
