Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
How the Management Equity Plan Traps PE-Backed CEOs
Episode 61 of The Acquisition Talk digs into the management equity plan — the MEP — a compensation structure that private equity firms use to align leadership with fund returns. But for CEOs and operating executives, the MEP often comes with hidden strings: preferred return hurdles, clawback provisions, and forfeiture windows that can leave top talent with nothing if a deal drags past year five. Lucas walks through the mechanics using the real-world case of a mid-market industrial roll-up backed by a $750 million fund, where the CEO's promised 8 percent carried interest evaporated when…
The skinny
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