Portfolio companies of venture capital and private equity funds usually motivate key executives through compensation tied to performance upon an exit. Such structures align the incentives of the fund with those of the executives but can lead to several tax issues that warrant thoughtful consideration.
280G Background
Section 280G of the Internal Revenue Code seeks to curb excessive executive compensation triggered by a change in control. The rules apply when a C corporation experiences a change in control if certain “disqualified individuals” (including 1% shareholders ...
Private equity funds have become major players in the professional health care delivery sector in recent years due to acquisitions of professional practices, including physician practices, senior living facilities and the like. Such activity has attracted attention from regulators, policymakers and the public, with a particular focus on impacts on quality of care and potential conflicts of interest for providers. Acquisitions of professional practices by private equity funds involve myriad regulatory and compliance obligations at both the federal and state level, and ...
Welcome to Private Fund Insights, a source for information and updates for both sponsors and investors in private funds of all types. Navigating the complex world of private equity is more challenging than ever, as investors seek higher returns, sponsors look for innovative ways to grow their businesses, and regulators consider and implement a growing body of compliance-related initiatives. Robinson Bradshaw’s Fund Formation and Investment Management attorneys, as well as our attorneys in related fields, will share insights relevant to both private equity fund sponsors and ...
About Private Fund Insights Blog
Private Fund Insights provides information and legal updates for both sponsors and investors in private funds of all types.
