Private Equity Waterfall and Carried Interest Provisions: Economic and Tax Implications for Investors and Sponsors
Structuring Distribution Waterfalls, Carried Interest Clawbacks and Allocations; Carried Interest Sharing at the Fund Sponsor Level; Related Planning and Drafting to Address Tax Consequences
Recording of a 90-minute CLE/CPE webinar with Q&A
This CLE webinar will analyze various methods of structuring waterfall provisions in private equity funds and carried interest distributions to fund managers and among their personnel, as well as related clawback and allocation provisions. The program will also examine the tax implications of such provisions.
- Typical waterfall variations and their economic implications for investors and the sponsor
- Carried interest clawbacks
- Carried interest sharing arrangements at the general partner level
- Tax ramifications, allocation provisions and tax distributions
The panel will review these and other key issues:
- What are the typical approaches for structuring a private equity fund distribution waterfall?
- How do these variations affect the timing of carried interest distributions to the sponsor?
- What are some of the approaches to sharing carried interest at the sponsor level?
- How can counsel address phantom income concerns for the sponsor?
Chris P. Kallos
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.Close
Daniel P. Meehan
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.Close