Court Square Ex-Partner Beats Firm in Court on Carried Interest

A onetime partner at Court Square Capital Management LP defeated the private equity firm in court Friday, when a Delaware judge rejected claims that he violated a noncompete and said the firm wrongly withheld nearly $5 million in carried interest payments.

Chancellor Kathaleen St. J. McCormick ruled for Kevin Brown, the first of a handful of executives to leave for the former MSD Capital, the family investment office of billionaire Dell Technologies Inc. founder Michael Dell. Dell, who later renamed his firm DFO Management, wasn’t directly involved in the court fight.

Carried interest, a major component of private equity compensation, ...