InTandem Capital Partners, LLC, a healthcare services focused private equity firm, announced the formation and launch of Private Equity for Greater Good (the “program”), a program that will enable all full-time employees at InTandem Capital backed portfolio companies to share in the equity gains they help create.
“Success is always the product of widespread teamwork and all employees should be rewarded for their contributions”
Envisioned as an industry-wide effort, Private Equity for Greater Good aims over time to help shift the norms of incentive equity plan construction and employee rewards by broadening the grant of equity-based incentives to align and reward all employees who contribute to their respective portfolio company success, rather than the typical concentration of equity participation among senior executives.
InTandem Capital fundamentally believes that success should be shared with all who contribute to it, proportional to their tenure, particularly against the backdrop of growing income and wealth inequality and the societal inequities that they create. Furthermore, by creating mechanisms to share investment gains among all employees, participating firms are not only doing the right thing for portfolio company team members, but also for shareholders through enhanced employee engagement and satisfaction, increased retention and greater alignment and productivity.
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The program is a call to action to all private equity firms. The private equity industry, which has approximately $5 trillion in assets under management, is uniquely positioned to address wealth concentration issues in profound ways. There are now more private equity-backed companies in the U.S. than there are public companies. Private Equity for Greater Good was inspired by the prior efforts of Bob Patricelli, InTandem Capital Strategic Advisor and healthcare industry veteran, who worked with Congressman John Larson (D-CT) as the lead sponsor, and Tom Suozzi (D-NY) and Bill Pascrell (D-NJ) as co-sponsors, to introduce legislation in 2021 aimed at incentivizing the broadening of equity ownership.
“Success is always the product of widespread teamwork and all employees should be rewarded for their contributions,” said Elliot Cooperstone, Managing Partner of InTandem Capital Partners. “Furthermore, we believe that by creating the mechanisms to share investment gains among all employees, we are not only doing the right thing for our portfolio company team members, but also for shareholders through the creation of an environment in which employee motivation and retention will be enhanced at all levels.”
“I am focused, especially in today’s political and social environment, on improving the sustainability of investment performance by increasing alignment across stakeholders,” said Jennifer L. Heller, President & Chief Investment Officer of Brandywine Group Advisors, a longtime limited partner of InTandem Capital. “When InTandem presented the concept of the program to me, I immediately recognized the substantial value it would provide to not only portfolio company employees, but the long-term success of their respective companies. I am thoroughly impressed with and appreciative of InTandem’s stewardship and willingness to launch such a meaningful program. This is an idea whose time has come.”
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Mr. Cooperstone continued, “We recognize that Private Equity for Greater Good will initially serve only a fraction of the individuals around the country who deserve access to such a program, but our firm and industry have an opportunity to make a positive social impact. There is still much work to be done at InTandem Capital and across the private equity industry to make this initiative as impactful as it can be, and we look forward to doing our part to help build momentum.”
While program specifics may vary based on elements unique to certain companies or investment structures, InTandem Capital has committed to the program for applicable existing investments and all new investments that it makes from its managed funds. The Private Equity for Greater Good plan documents, which InTandem Capital designed in partnership with its counsel Goodwin Procter LLP (“Goodwin”), and related communication materials are being made available to all private equity firms who share similar beliefs and wish to participate. Goodwin will also administer the program at no cost. All that is required to join the program is a commitment to share investment gains in some measure with all employees who participated in creating success.
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