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 video webinar with Q&A
This CLE course will analyze various alternatives to structure waterfall provisions in private equity funds, carried interest, and related clawback and allocation provisions. The program will also examine the tax implications of such provisions.
Outline
- 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
Benefits
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?
Faculty
Nathaniel M. Marrs
Partner
Willkie Farr & Gallagher
Mr. Marrs is a partner in Willkie’s Chicago office, where he is a member of the Asset Management Department and... | Read More
Mr. Marrs is a partner in Willkie’s Chicago office, where he is a member of the Asset Management Department and Private Funds practice. He has over 25 years of fund formation experience and is a recognized leader in the market, with a particular focus on private funds investing in the real estate, infrastructure and energy sectors. His practice is focused on the structuring and formation of private funds, management companies, carried interest arrangements and joint ventures. Mr. Marrs represents a variety of US and international private fund sponsors, investors and other stakeholders across numerous industries.
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Aalok Virmani
Partner
DLA Piper
Mr. Virmani advises investment fund sponsors on federal income tax matters. In particular, he focuses on the domestic... | Read More
Mr. Virmani advises investment fund sponsors on federal income tax matters. In particular, he focuses on the domestic and international tax aspects of forming, organizing, and operating private equity funds, private equity real estate funds, venture capital funds, hedge funds, debt funds and secondary funds. Mr. Virmani's practice includes counseling family offices with respect to establishing investment platforms and management incentive arrangements. He also regularly represents clients with respect to GP-led fund restructurings, U.S. and non-U.S. investor representations, secondary transactions, and minority investments in fund sponsors. Mr. Virmani spent significant time in-house as a principal at Equity International, a private equity firm that invests in non-U.S. real estate companies.
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