There are several problems with raising the Carried Interest Tax: 1. Ultimately, this tax will be borne by many middle-class folks, as is usually the case with raising taxes. As long as there is a favorable capital gains treatment, financiers who are in the business of making capital gains will find a way to get […]
This is the first in a series of Vox Populi posts on the carried interest taxation issue. It first appeared on Bill’s blog. So there’s a move afoot by some within Congress to tax all carried interest as ordinary income instead of capital gains. In case you aren’t familiar with the term, carried interest is the […]
Summer is an interesting time in the recruiting cycle. Newly minted MBA’s are looking forward to their new careers. Summer interns bring their fresh, eager faces and enthusiasm to offices across the country. Even senior-level candidates are still actively looking for their next opportunity, because we’re not so far yet into the year that leaving a […]
In my last post (Searching for Alpha), I commented on how applying hedge fund metrics to private equity fund performance creates unique complications. Recently another phenomenon in the convergence of alternative assets has emerged as a hot topic—hedge funds making investments in illiquid private companies. In a large buyout deal announced earlier this year, KKR […]
Yesterday I attended the ACG M&A Conference in Boston, and was looking forward to the luncheon comments of Michael Lewis. His previous book – Liar’s Poker – was an interesting read and I’ve suggested it to more than a few folks who wanted to know what investment banking would be like if they jumped in as […]
What follows is the prepared statement I gave at a House Small Business Committee hearing yesterday, on the subject of proposed reforms to Sarbanes-Oxley. Specifically, I wanted to talk about whether or not the new standards would lower compliance costs for small companies: Chairwoman Velazquez, Ranking Member Chabot and Members of the Committee, my name is […]
I was at a private equity conference last week focused on issues of interest to Limited Partners. One of the things that struck me was several Limited Partners who described investing in private equity as “the search for alpha.” While in the past I have heard many Limited Partners talk about alpha, I have found […]
In a recent New York Times article, Viacom CEO Philippe Dauman sounded exasperated: “Every day we have to scour the entirety of what’s available on YouTube, so we have to look for our stuff,” and added, “It is very difficult for us and places an enormous burden on us.” This overt frustration is not limited […]
Hold on to your wallets. Several tax changes have been bandied about recently aimed at raising revenue under new PAYGO rules adopted by the 110th Congress. One of them is the focus of a New York Times article, which would eliminate the offshore exemption for Unrelated Business Taxable Income (which is commonly dyslexically called “UBIT”) […]
In a recent article in The Financial Times, Harvard Business School Professor Josh Lerner closed his discussion on the performance of portfolios of private equity partnerships by noting: But a large portion of the differences [in the performance of private equity portfolios] seems due to simply superior decisions about funds to invest in, and which […]