Private funds reward
We advise private fund managers on how best to deliver remuneration to their executives in a commercially aligned and efficient way. In doing so, we act on an international basis designing arrangements for executives across the globe with varied tax statuses and sensitivities. We approach our work from a reward angle.
In particular, we advise private fund managers on a global basis on:
- the appropriate choice of fund manager/adviser jurisdiction and entity, and the appropriate status of executives within each entity;
- the delivery of the team’s share of management fee profits through salary, profit share, bonus or dividend;
- the design and implementation of carried interest and promote sharing schemes for the full range of funds including deal by deal, fund as a whole, deal by deal within fund as a whole, NAV and index based arrangements;
- how to award carried interest in an aligned way over multiple years of a fund’s life;
- the structuring and funding of executive co-investment schemes including the use of management fee flows and leverage to fund these commitments; and
- bonus plans including phantom carry/co-invest plans.
We also act for balance sheet investors and family offices looking to implement equivalent arrangements for their investment teams.
Our team has tax and reward expertise together with regulatory, employment law, partnership law and corporate specialists providing a seamless service to clients. Internationally, we obtain input from the most appropriate advisers in the relevant jurisdictions to provide a single product to clients.