PE Pathways

Carried Away Series – What's Changing in GP Economics

"Carried Away" is a multi-episode series under our PE Pathways podcast exploring the economics of private funds — management fees, carry, and the tax rules behind them. Each episode in the "Carried Away" series will bring together Troutman Pepper Locke attorneys for a candid conversation about what is really happening in the market, including current GP fee and carry norms, how GPs are sharing economics with anchor LPs and strategic partners, and how firms are using carry to recruit and retain talent across the organization. We also discuss how recent and pending court decisions are reshaping tax planning for management fees. In this episode, Private Equity Partner Thao Le is joined by fellow PE Partners Stephanie Pindyck-Costantino and Ted Edwards for a practical, market level look at how private fund economics are evolving beyond the classic "2 and 20." Together, they break down what GPs are actually doing today on management fee and carry structures and distribution waterfalls for private funds and discuss the delicate balance of GP stakes and LP interests. Blending transactional and regulatory perspectives, the trio examines the tension between keeping the lights on for managers and delivering net returns for investors, and explains how to translate complex fee and carry mechanics into clear, defensible disclosures. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com [https://pcm.adswizz.com] for information about our collection and use of personal data for advertising.

Unlocking Value in Distressed Companies: Debt-for-Equity and Loan-to-Own Strategies

This is the fourth episode in our series on private equity and distressed assets with attorneys from our Bankruptcy + Restructuring and Private Equity practice groups. In this episode, Corporate Partner Rachel Fitzgerald sits down with Finance and Banking Partner Jason Ulezalka and Bankruptcy and Restructuring Partner David Fournier to examine how private equity investors can unlock value in distressed companies through debt-for-equity swaps and loan-to-own strategies. They discuss how converting debt to equity can deleverage a business, preserve going-concern value, align lender and owner interests, and position loan-to-own investors to strategically acquire debt and use credit bidding to gain control without paying full cash value. The conversation demystifies key concepts such as the "fulcrum security," compares out-of-court exchanges with prepackaged and pre-negotiated Chapter 11 restructurings, and explains when a bankruptcy filing is necessary to drive operational change. Along the way, they highlight practical risks — from valuation fights and fiduciary issues to lender liability and successor liability — illustrating why tight coordination among legal, financial, and operational advisors is critical in distressed M&A. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com [https://pcm.adswizz.com] for information about our collection and use of personal data for advertising.

Leveraging Assignments for the Benefit of Creditors in Distressed Deals

This is the third episode in our series on private equity and distressed assets with attorneys from our Bankruptcy + Restructuring and Private Equity practice groups. In this episode, Private Equity Partner Nick Stawasz is joined by Bankruptcy + Restructuring Partner Evelyn Meltzer to shine a spotlight on how private equity sponsors and strategic buyers can unlock value in distressed situations using assignments for the benefit of creditors (ABCs). The episode covers why ABCs have increased in popularity from both the buyer and seller perspectives, as well as the challenges that may be faced in these situations and how to address those challenges. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com [https://pcm.adswizz.com] for information about our collection and use of personal data for advertising.

Food and Beverage Industry Updates 2026

This episode of PE Pathways features a recording of a recent panel discussion during a private equity event sponsored by Troutman Pepper Locke and Alliant. Private Equity Partner Nanette Heide hosted the event, and the day featured a panel moderated by fellow Private Equity Partner Joe Kadlec. Panelists included Brian Choi, managing partner and CEO of the Food Institute; Sheemul Valecha, a managing director at BDO Capital Advisors; and Craig Dubitsky, founder and CEO of Happy Products. The panel discussed the state of the deal market for the food and beverage sector. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com [https://pcm.adswizz.com] for information about our collection and use of personal data for advertising.

Selling a Distressed Asset

This is the second episode in our series on private equity and distressed assets with attorneys from our Bankruptcy + Restructuring and Private Equity practice groups. In this episode, Private Equity Partner Thao Le is joined by her fellow Private Equity Partner Don Readlinger and Bankruptcy + Restructuring Partner Alex Rovira to unpack how sponsors, portfolio companies, and lenders can navigate the sale of a distressed asset. They break down the practical differences between out-of-court Article 9 sales and in-court Section 363 sales under the Bankruptcy Code — covering speed, cost, process control, diligence, and risk allocation — while flagging key pitfalls of such sales. Along the way, they explore how sophisticated PE firms and private credit funds can use tools like credit bidding and stalking-horse arrangements to shape outcomes on both the buy and sell sides. Future episodes in this private equity/distressed M&A series will cover topics such as the benefits and pitfalls of acquiring assets via an ABC; debt-for-equity and loan-to-own strategies; and potential traps for the unwary in distressed M&A transactions. Our first episode in this series discussed the "State of Play in Navigating Distressed Middle Market M&A [https://www.troutman.com/insights/state-of-play-in-navigating-distressed-middle-market-ma/]." Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com [https://pcm.adswizz.com] for information about our collection and use of personal data for advertising.