equity partnership agreement

this week we’re going to delve into those implications and challenge the traditional assumption that equity partnership is necessarily more attractive than non-equity partnership. the equity partners of a growing and profitable firm can expect to take home an outsized share of the financial rewards. for example, one factor that contributes to the equity partnership’s outsized compensation share is origination credit. it’s easy to focus on the considerable benefits of becoming an equity partner, but there are also some real downsides that should not be overlooked. under the rules of many partnership agreements, the firm is not obligated to return the money until years after an equity partner’s exit.