Private Equity Carried Interest Clawbacks: Navigating Clawback Mechanisms, Fund Agreement Provisions, Tax Considerations
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will discuss clawbacks of carried interest paid to private equity fund managers, focusing on the various clawback mechanisms, structuring fund economic provisions and clawback provisions, and the tax ramifications of clawbacks of carried interest.
Outline
- Fund waterfall options and carried interest economics
- Options for preserving the economic deal
- Tax implications of carried interest clawbacks
- Detailed analysis of clawback features
- GP-level implications of carried interest clawbacks
Benefits
The panel will review these and other key issues:
- How do variations in distribution waterfalls affect the timing of carried interest distributions to the sponsor? What are the related tax implications?
- What are the available mechanisms for preserving the partners’ economic deal?
- What are the key tax and nontax features of carried interest clawbacks?
- What are the income tax ramifications of carried interest clawbacks?
- What are the key GP-level considerations arising from carried interest clawbacks?
Faculty
Chris P. Kallos
Partner
Kirkland & Ellis
Mr. Kallos is a corporate partner who is recognized internationally as one of the top attorneys in the area of... | Read More
Mr. Kallos is a corporate partner who is recognized internationally as one of the top attorneys in the area of private investment fund formation and management. As a leader of the firm’s Private Funds Group, he has been instrumental over the course of two decades in developing the firm’s industry-leading global practice. Mr. Kallos leads fund formation matters for large and middle-market buyout, growth equity, debt, secondary, venture, technology, real estate and other funds, and advises his private equity clients on a wide variety of related matters. He is a frequent speaker and panel moderator in the U.S. and internationally on private equity fund-related matters.
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Daniel P. Meehan
Partner
Kirkland & Ellis
Mr. Meehan is a tax partner in the Chicago office of Kirkland & Ellis LLP. His practice focuses on the tax... | Read More
Mr. Meehan is a tax partner in the Chicago office of Kirkland & Ellis LLP. His practice focuses on the tax aspects of forming private equity funds, credit and other debt funds, hedge funds and venture capital funds, the tax issues specific to both fund sponsors and investors, and the tax aspects of private equity transactions, mergers and acquisitions. He has extensive experience advising clients with respect to the tax aspects of partnerships, LLCs and S corporations, as well as nonqualified and equity-based compensation arrangements.
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