Investment Banking

Joint ventures

 A joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.Each entity in the joint venture, which could be individuals, groups of individuals, companies, or corporations, keeps its separate legal status. A joint venture may be set up by a contract that outlines the resources, such as money, properties, and other assets, each entity will bring to the venture. The contract also establishes how the venture will be managed and how control of it—and profits and losses from it—will be divided.A joint venture might involve two companies with different areas of expertise working together to create a new product or provide a new service. Or a company looking to break into a new geographical market might form a joint venture with a company that is based in or has an established presence in the country or region.