Monday, 29 December 2014
Last updated 10 hours ago
Oct 23 2007 | 12:32pm ET
In a sign that the alternative investments community fears it will not be able to scuttle new rules that would vastly inflate their tax bills, it has struck upon a new strategy to make the tax hike more palatable.
Lobbyists for private equity firms and hedge funds are pushing to double the length of the grace period contained in a Senate bill to 10 years. Under the proposed legislation sponsored by Sens. Max Baucus (D-Mont.) and Charles Grassley (R-Iowa), alts firms that go public will be subject to the corporate tax rate of as much as 35%, rather than the 15% capital-gains rate they pay as partnerships.
Further, the industry is pushing to extend the law to all hedge fund and private equity firms that go public. As currently written, the bill applies only to firms that have completed the initial public offerings or filed to do so before the bill was introduced on June 14. Only three firms-The Blackstone Group, Fortress Investment Group and Los Angeles hedge fund Oaktree Capital Management-would qualify under that provision.
"Our members’ position would be that all private equity firms should be treated equally," Doug Lowenstein, head of the Private Equity Council, said in an interview. Some private equity firms are reportedly saying that the rule as currently written would give Blackstone an unfair edge.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.