Article
Senior Exits In Private Credit Portcos: Navigating The Transition To An Uncapped Unfair Dismissal Regime
As private credit owners navigate troubled borrower situations, they often face the challenge of replacing underperforming senior management teams. With the UK abolishing the unfair dismissal compensation cap and reducing the qualifying period from two years to six months starting January 2027, the landscape for managing executive exits is set to transform dramatically, making current strategies for performance management and negotiated departures significantly more complex and costly.
Macfarlanes LLP