Advanced Profits Interests Issues for Private Equity Sponsors | Practical Law

Advanced Profits Interests Issues for Private Equity Sponsors | Practical Law

A Practice Note addressing issues that private equity sponsors should consider when granting profits interests. This Note discusses the tax advantages of profits interests, the requirements for tax-free grants of profits interests, structuring the distribution waterfall, common vesting, forfeiture, and repurchase provisions, partner-employee classification issues, restrictive covenants, and granting profits interests in non-US jurisdictions.

Advanced Profits Interests Issues for Private Equity Sponsors

Practical Law Practice Note w-020-2879 (Approx. 19 pages)

Advanced Profits Interests Issues for Private Equity Sponsors

by Henrik Patel & Tal Marnin, White & Case LLP, with special thanks to Sang I. Ji and Nicholas Greenacre, with Practical Law Employee Benefits & Executive Compensation
MaintainedUSA (National/Federal)
A Practice Note addressing issues that private equity sponsors should consider when granting profits interests. This Note discusses the tax advantages of profits interests, the requirements for tax-free grants of profits interests, structuring the distribution waterfall, common vesting, forfeiture, and repurchase provisions, partner-employee classification issues, restrictive covenants, and granting profits interests in non-US jurisdictions.