carried interest

Once the carried interest exception has been dealt with, it would be wiser to call a halt, even if the Blackstone tax structure survives.

It is much closer to a performance fee than an equity stake (managers can only gain from the carried interest, which cannot be negative).

Carried interest is not the only concern weighing on the minds of private-equity bigwigs.

If partners are to pay income tax on fees and carried interest then the sale value of the contracts should also be subject to income tax.

They are used to paying only capital gains tax on carried interest but ought to be paying income tax.

One such is its treatment of "carried interest" , a share in the returns that managers can earn, as income rather than as a capital gain.

Politicians are considering proposals to tax the "carried interest" of private-equity executives at higher income-tax rates.

Mr Fleischer, a driving force of the tax push on carried interest, suggests that "rough justice" is also justified in principle.

A proposal to raise the federal taxes that hedge-fund and private-equity managers pay on their carried interest has stalled in the Senate.

carried interest [petroleum industry]: A fractional interest in oil and gas property, usually a lease.

Currently, carried interest is taxed at the lower rate of capital gains (15%), as opposed to income (35%).

I agree with Victor Fleischer's basic premise that carried interest is a fee for managing other people's money.

The case of carried interest in private equity and hedge funds provides an example.

Carried interest that flows to the GPs is normally based on the performance of the entire fund rather than on individual deals.

One option is a 2% management fee and a 20% carried interest. The other is a 1% management fee and a 30% carried interest.

Buy-out groups must brace for greater shocks to their business model than the taxation of carried interest as income alone.

Opponents of the bill say that carried interest deserves capital-gains treatment because it is a long-term investment and carries risk.

Taxation of carried interest?

Bain traditionally charges a 2% annual management fee and 30% carried interest, both of which are higher than the industry standard.

The bill suggests changing this and taxing 75% of carried interest as income and 25% as capital gains, starting in 2013.

I am in favor of taxing carried interest as ordinary income and I'd like to explain why I think it is good policy.

The result is that a notable proportion of the financial services industry co-invests with clients and gets paid through carried interest.

Fees are 1 per cent with 20 per cent carried interest, subject to a 7 per cent hurdle.

That's not an amazing year, but the manager will make $160mm in carried interest anyway.

A VC: Why Taxing Carried Interest As Ordinary Income Is Good Policy Why Taxing Carried Interest As Ordinary Income Is Good Policy

The GPs should be chiefly motivated by rewards generated from carried interest

Tax efficient for management fee & carried interest