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Advanced Profits Interests Issues for Private Equity Sponsors

Partner and Global Head of White & Case's Employment, Compensation & Benefits Practice Henrik Patel and Counsel Tal Marnin co-authored a Practice Note titled "Advanced Profits Interests Issues for Private Equity Sponsors" published by Practical Law. Partners Sang I. Ji and Nicholas Greenacre also contributed to the piece.

This Practice Note provides an overview of the issues that private equity sponsors should consider when granting profits interests.

The piece 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.

White & Case's Global Employment, Compensation & Benefits lawyers advise across the full spectrum of employment, compensation and benefits issues, including advisory and transactional, contentious and non-contentious. 

 

To download a PDF of the article, click here.

 

Reproduced with permission from Practical Law, 2019. For further information please visit: www.practicallaw.com

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