Negotiating Extra Vesting
Sector
Private Equity
Title
Principal
Location
USA
The Situation
The client secured a lateral private equity job and resigned from their firm. Their firm was very unhappy with the resignation and attempted to "throw the book" at the client, offering the bare minimum economics and unfriendly separation terms. The client was at risk of forfeiting millions of dollars of equity due to only being partially vested across multiple funds and investments. The client contacted Charlie to assist in negotiating the best possible terms as part of the separation.
The Process
Charlie sat down (virtually) with the client to learn about their history with the firm, the circumstances of the departure, and all the relevant parties involved. Charlie developed a narrative on which the client could argue for enhanced vesting and better separation terms. He laid out a detailed approach to delivering the narrative with a particular emphasis on communication with third parties and other team members.
The Result
The client executed the plan as designed, ultimately securing a large portion of the unvested carry. In addition, the firm agreed to non-disparagement clauses and other terms that protected the reputation of the client who continues to enjoy their role at a different PE firm.