Is Employee Ownership Possible with a Private Equity Firm?
Founders often worry that bringing in outside capital means losing the heart of their company. The truth? It depends on your partner.
At Rallyday, we believe equity should be shared with those that value it. When employees have a stake in the upside, they typically act more like an owner. They care more, innovate more, and stay longer. That’s culture compounding in real time.
Employee ownership can take many forms:
- Phantom equity or profit-sharing for key leaders
- Broad-based bonus pools tied to company value creation
- Direct rollover equity for the next generation of leaders
What matters most isn’t the structure — it’s the spirit behind it.
We’ve seen firsthand that incentives matter. When you get this right, employees think longer term. Founders get real leverage. And investors benefit from a team that’s rowing with velocity (speed and direction).
Private equity doesn’t have to mean extraction. In the right hands, it means alignment.
Takeaway: At Rallyday, we can structure an employee ownership program without the pitfalls of an ESOP. Just ask us!
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