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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