Carried Interest and Profit Sharing Plans for Hedge Fund and Private Equity Fund Managers

HFs and PEFs charge a performance fee and/or carried interest in addition to the management fee when fund managers produce returns beyond a certain hurdle / benchmark agreed with their investors which aligns the interest between the investors and the fund managers. This course will explore various compensation structures for HFs and PEFs and will use case studies to illustrate how this works.

Detailed Information

  • Overview on various types of M&A deals
  • Deferred Compensation and other Retention Plans
  • Fund Appreciation Rights Compensation Structures
  • Equity Incentives in Limited Liability Companies (LLCs)
    • Profits Interests
    • Capital Interests
    • Unit Plans
  • Example of a FAR Structure
  • Carried Interest Plans
  • Case Study: Internet Capital Group Carried Interest Plan
  • Case Study: SVB Carried Interest Plan