PE Investment fund delayed, will lose top candidate to take over company being funded- options?

PE that funds "green companies" is ~30 days away from funding an organic nutrient company that will require a top management change to take the company to the next level. The PE once funds final will take 51% ownership. There is a prime candidate available that would be perfect to step in, but this candidate cannot wait another 30 days to be hired as he has other offers. The PE portfolio financing has taken more time than expected (8+ months) due to a variety of issues, most notably (i) the banking collapse caused by Silicon Valley Bank, et al and (ii) the untimely health issues (now fully resolved) by the primary owner of the fund.

My Question: What is stopping either company to retain the prime candidate in advance of the final funding? Can the Organic Nutrient company pay the retainer then be reimbursed by the PE once the funds hit in approx 20-30 days? The answer from a board member on the PE said:

"...the format is to fund a portfolio of companies at a given time. Until the total funds are made available and closings and first release of funds per contract take place, there are NO bridge or other monies available for advances, retainers, etc..."

So the PE can't fund the retainer (really?!) but what about the Organic Co being funded? The Organic Co isn't bankrupt they've just been a sleeping giant - anything precluding them from paying a small advance to a top candidate? Why can't the PE simply just retain this guy even though the funds aren't yet final? Just confused bc this seems so simple but I don't know the rules or regs (if any) that govern a PE investment funding a company within in a small window >30 days…or really why the PE wouldn’t do whatever it took the get this guy as they themselves (as well as the Nutrient Co.) have him as their 1st choice? What am I missing? Thanks!!

 

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