While family entre­pre­neurs usually deal with ques­ti­ons of asset struc­tu­ring and succes­sion plan­ning at an early stage, this issue is not infre­quently pushed into the back­ground by invest­ment mana­gers of private equity funds (herein­af­ter also refer­red to as “PE mana­gers”). Howe­ver, it is also important for PE mana­gers to deal with this issue in order to protect them­sel­ves from unwan­ted (tax) asset encroachments.

Even though PE mana­gers often do not see them­sel­ves as clas­sic entre­pre­neurs, their asset struc­ture is certainly compa­ra­ble to that of entre­pre­neurs. PE mana­gers are usually employed by the manage­ment compa­nies of private equity funds or private equity firms. Howe­ver, they do not derive their main remu­ne­ra­tion from their employ­ment acti­vi­ties, but from their parti­ci­pa­tion in the private equity funds under company law. These are prima­rily fund invest­ments (so-called carried inte­rest), which parti­ci­pate dispro­por­tio­na­tely in the success of the perfor­mance of a private equity fund. In addi­tion, PE mana­gers often invest in the fund via so-called co-invest­ments. It is not uncom­mon for inves­tors to empha­size the commit­ment of PE mana­gers in their own fund when evalua­ting the attrac­ti­ve­ness of a private equity fund.

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