Hypothetical. EP laterals to an AM 100 firm as an EP with a defined comp peg. Pre-lateral, EP discloses that a baseline volume client might not port. Firm proceeds, approves equity, and takes capital. One year in, that risk materializes. Hygiene is strong; EP originated several material matters from new, high-profile clients, but original book did not port. Leadership says they want partner to stay, but proposes a quiet equity unwind (demotion to IP) and much lower base. Thoughts or advice?

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Or new firm causes the client issue. Either way, if all they care about is dollars, says everything about the firm.

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Yeah. If you don’t have enough revenue to support your % then they have to subsidize you, right? Harsh, but it’s how business works. Think about how you would see it if you were on the other side. That said, maybe it should have been discussed what would happen if client didn’t port when you disclosed it (good on you for being transparent up front).

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Unfortunate situation, some should've would've could've situations here. Should've negotiated a few years to ramp up before quiet de-equitizing.

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