Private Equity 2025

INTRODUCTION  Contributed by: Markus Paul, Freshfields

the incentives of a leaver, with the economic conse - quences varying according to the nature of the cir - cumstances of the departure (ie, whether the situation concerns a “good leaver” or a “bad leaver”). Many schemes include vesting features that allow manag - ers to secure their position in the scheme over time. In almost all markets, managers are subject to restric - tive covenants, such as non-compete and non-solic - itation. These can be part of the equity arrangements or set out separately in employment agreements.

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