Q&A | 10.02.2026

What is the management reinvestment in a PE transaction?

Management reinvestment involves the management team’s capital commitment to the company after the private equity fund’s entry.

In private equity transactions, management reinvestment aims to engage the management team alongside the fund in order to ensure continued joint value creation for the company. The scope and form of reinvestment depend on the structure of the transaction and the individual arrangements between the parties, including the terms of future exit from the investment.