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.