Backstop Equity Commitment Letter | Practical Law

Backstop Equity Commitment Letter | Practical Law

A backstop or back-to-back equity commitment letter commonly used in connection with a private equity club deal buyout. This letter agreement sets out the terms and conditions by which a private equity or other investor commits to satisfy a portion of the sponsor's equity financing commitment. This Standard Document can also be used for a new cash investment by the sellers, founders, or management. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.

Backstop Equity Commitment Letter

Practical Law Standard Document w-000-6782 (Approx. 17 pages)

Backstop Equity Commitment Letter

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
A backstop or back-to-back equity commitment letter commonly used in connection with a private equity club deal buyout. This letter agreement sets out the terms and conditions by which a private equity or other investor commits to satisfy a portion of the sponsor's equity financing commitment. This Standard Document can also be used for a new cash investment by the sellers, founders, or management. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.