Private Equity Waterfall and Carried Interest Provisions: Economic and Tax Implications for Investors and Sponsors
Distributions, Clawbacks, and Allocations; Carried Interest Sharing; Drafting to Address Tax Consequences
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE 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 and 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 impact 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?
David H. Stults
Kirkland & Ellis
Mr. Stults concentrates his practice on representing domestic and international private fund sponsors in connection... | Read More
Mr. Stults concentrates his practice on representing domestic and international private fund sponsors in connection with structuring, negotiating, forming and operating private investment funds, including buyout funds, growth equity funds, debt funds, real estate funds and other private investment vehicles, including single asset funds and special purpose vehicles. He also focuses on representing private equity sponsors in connection with the organization, structuring, and operation of their management companies.Close
Kirkland & Ellis
Mr. Virmani's practice focuses on the tax aspects of forming and investing in private equity funds, hedge funds and... | Read More
Mr. Virmani's practice focuses on the tax aspects of forming and investing in private equity funds, hedge funds and joint ventures and the tax aspects of private equity transactions, mergers and acquisitions. He has extensive experience advising clients with respect to partnership, corporate and cross-border tax issues.Close