ARTICLE · 07 MARCH 2024

An Introduction To Australian Management Equity Plans In A Private Equity Context

Alvarez & Marsal

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Private capital continues to experience a meteoric rise, with the Australian Investment Committee reporting assets under management at a record high of $118 billion as of September 2022.

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Private capital continues to experience a meteoric rise, with the Australian Investment Committee reporting assets under management at a record high of $118 billion as of September 2022. With the Australian market continuing to attract a larger proportion of domestic and foreign investors, a core consideration for any private equity acquirer is ensuring that key management personnel, whether existing or new, of a portfolio company are sufficiently incentivised and aligned with the commercial objective of the private equity house to generate superior returns on exit. The most common tool to increase alignment of interests would be implementation of management equity plans (typically referred to as MEPs).

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