Press Coverage October 5, 2026

Private Equity Leans More Heavily on Earnouts in Exit Deals

Related professionals

Jeremy I. Levy

Jeremy I. Levy, a partner in Troutman Pepper Locke’s Corporate Practice Group, was quoted in the October 5, 2026, S&P Global Market Intelligence article, “Private Equity Leans More Heavily on Earnouts in Exit Deals.”

  • That’s part of the reason private equity sellers are reluctant to rely on earnouts, said M&A attorney Jeremy Levy of Troutman Pepper Locke LLP. More common is a “sponsor rollover,” where the exiting fund manager agrees to retain a minority stake, lowering the purchase price for the buyer.
  • “When a sponsor is exiting a platform, their objective is to return capital to their limited partners. They want as much cash as they can get all at once,” Levy said.
Insight Industries + Practices