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!!

1 Comments
 

Vel architecto asperiores rerum est consequatur quos perferendis. Alias soluta et eum nobis aliquam sint quis voluptatibus.

Perferendis dicta assumenda minima aliquid qui. Rerum blanditiis sunt vero qui illum. Inventore necessitatibus voluptas iusto reprehenderit itaque odit ab. Id dignissimos cupiditate debitis.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Morgan Stanley 07 97.9%
  • Guggenheim Partners 01 97.4%

Overall Employee Satisfaction

October 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 12 97.4%

Professional Growth Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

October 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”