Hot Topics for Private Equity Houses - Underwater Management Equity

In this current climate of distressed situations and reductions in company valuations - Underwater Management Equity is an issue facing many PE backed businesses.

In this video, the next in our series of Hot Topics for Private Equity, we discuss some of the possible solutions to Underwater Management Equity and how PE Houses should be proactive in addressing the situation. We look at the enterprise value going forward and what can be done around equity and debt structures with particular regard to resetting management incentives. We also discuss the effect that the differing views of stakeholders will have, banks, new management teams and possibly restructuring officers and the best way to create value now that equity is not the driving factor.