Case Study – Carried Interest Plan – Private Equity Division of Large Financial Institution


Following internal discussions on the introduction of a long term incentive plan for the division, advise client on and design, implement and prepare documentation for a carried interest plan.


  • using existing market knowledge, provide advice on design features, tax consequences and legal structure of a carried interest plan for the private equity division 
  • prepare financial models to determine quantum of payout under the plan under various “what if” scenarios
  • using MM&K’s own market based data, provide advice on relative allocation of carry points between the members of the team
  • prepare detailed carried interest plan specification, including recommendations as to treatment of leavers and joiners
  • prepare initial draft rules and other ancillary documentation for approval by the Head of Private Equity and the Remuneration Committee
  • oversee implementation, including first awards under the plan.