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.