Carried Interest Tax Proposal Could Hit a Quarter of Buyouts


Frank Steinherr said regarding a House tax proposal to treat deal profits shared with investment managers as long-term capital gains only if earned on investments held at least three years rather than the current one: “The political optics of such a move might have a greater impact than the tax effect. A three-year period would still be a quick flip for most private equity shops, and most would just work around to avoid paying higher tax on exit.”