How to Negotiate Key Person Provisions – A Lawyer’s Guide

The key person clause is one of the most important instruments of governance and discipline for investment funds. At its core, the key person provision helps to ensure that individuals who are identified as being critical to the prospects of the fund are focused on the investments of the fund, failing which the fund will usually be precluded from making further investments

 

In this piece, we introduce the broad elements of the key person provision and closely examine some of the key aspects to keep in mind when drafting and negotiating key person provisions for private funds

 

Thank you for subscribing. We appreciate your interest.

We regularly write on Fund Formation, PE, PIPE and M&A, Structured Finance, Fund Litigation, Governance and Stewardship. Stay tuned.