Carried Interest Plan - Private Equity Division of Large Financial Institution

Brief:

Following internal discussions on the introduction of a long term incentive plan for the division, advise client on and design, implement and prepare documentation for a carried interest plan.

Solution:

using existing market knowledge, provide advice on design features, tax consequences and legal structure of a carried interest plan for the private equity division
prepare financial models to determine quantum of payout under the plan under various “what if” scenarios
using MM & K’s own market based data, provide advice on relative allocation of carry points between the members of the team
prepare detailed carried interest plan specification, including recommendations as to treatment of leavers and joiners
prepare initial draft rules and other ancillary documentation for approval by the Head of Private Equity and the Remuneration Committee
oversee implementation, including first awards under the plan.

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