Traditional Search & Seller Rollover Equity

searcher profile

February 26, 2026

by a searcher from Northwestern University - Kellogg School of Management in Chicago, IL, USA

Hi, Quick modeling question. In a structure where the seller rolls 10% preferred equity, is that 10% applied before or after carry? For example, If I hit my 25% carry hurdle, does the seller’s stake become 10% of the remaining 75% (i.e., 7.5%), or do they keep a full 10% of total equity?
0
0
4
Replies
0
Join the discussion