Term Sheet: Management Compensation and Incentive Equity (Private Equity Transaction) | Practical Law

Term Sheet: Management Compensation and Incentive Equity (Private Equity Transaction) | Practical Law

A term sheet between a key member of management and a private equity fund vehicle in a private equity buyout, which outlines the equity-based incentives for management in a sponsor-backed acquisition. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.

Term Sheet: Management Compensation and Incentive Equity (Private Equity Transaction)

Practical Law Standard Document w-019-3183 (Approx. 10 pages)

Term Sheet: Management Compensation and Incentive Equity (Private Equity Transaction)

by Practical Law Corporate & Securities
Maintained • USA (National/Federal)
A term sheet between a key member of management and a private equity fund vehicle in a private equity buyout, which outlines the equity-based incentives for management in a sponsor-backed acquisition. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.
On August 23, 2023, the SEC adopted new rules under the Investment Advisers Act of 1940 for private fund advisers (see Legal Update, SEC Adopts New Rules for Private Fund Advisers) (the "New Rules"). The New Rules are generally effective 12 to 18 months after publication in the Federal Register and will have a material impact on limited partnership agreements for private equity funds and may require revisions to this resource. Updates are planned in the near future. For more information on the final rule, see Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews, Fed. Reg. 88 FR 63206 (Sept. 14, 2023).