|
Sponsored spin-offs: new spin on divestment strategy provides tax and other advantages
22/08/2007. A Q&A discussion with Mark Mandel about the sponsored spin-off structure. An unconventional and creative adaptation of the "tax-free spin-off" - whereby a parent company divests a business and new, publicly traded shares are distributed to its stockholders - is generating interest because of the tax and other advantages it can provide over the traditional spin-off. It's called the "sponsored spin-off" and involves a sponsor taking a minority albeit significant stake in the spun-off company. 
Why over-commitment is required to achieve target exposures to private equity
27/06/2007. With private equity moving from an alternatives asset allocation consideration to an extension of the equity asset class, many institutional investors are either initiating a new allocation to private equity or increasing their smaller allocations to a more meaningful portion of their portfolio. This paper from Fort Washington examines a method for initiating and reaching a target private equity allocation.
Winning management’s vote - alternative approaches to equity compensation
23/05/2007. Auctions have become a fact of life for private equity sponsors, says Weil, Gotshal & Manges, with most privately-held companies, even mid-market and smaller companies, being sold through some form of competitive process. Although management may not be able to direct the outcome of an auction, they usually have some influence and potentially a casting vote between competing bidders who are offering roughly similar prices for the business. In order to gain a competitive edge in an auction, private equity sponsors increasingly are trying to structure equity incentives in a tax-efficient manner for management.
|
