Impact Contracting in the PE Industry

In the Private Equity industry, contracts (LPAs and shareholders' agreements/SPAs/Company articles of association) are critical in determining the behavior and practices of PE firms and portfolio company managers, respectively. They define all agents' commitments and compensation structures and are negotiated between well-informed parties about the financial and extra-financial issues at stake. The project aims to analyze the evolution of contracting practices and compensation structures for agents in this industry to encourage the search for extra-financial impact and the influence of these new practices on fund performance.