Patrick Fenn Quoted by New York Times on PE Industry Responses to Proposed Hike in Carried Interest Taxes

Akin Gump tax partner Patrick Fenn was quoted in the New York Times article “With Tax Advantages Looking Shaky, Private Equity Seeks a New Path,” which discusses the likelihood that taxes on carried interest income will be raised as part of the government’s efforts to find new revenue streams, and that measure’s possible impact on the private equity industry.

Discussing one possible strategy by which a PE firm would create a corporate holding company to buy and manage each individual portfolio company instead of buying them through a partnership, Fenn noted that this structure is similar to one used in venture capital, “People are looking at this, but no one has gotten to the point where they’d do it for their next fund.  You won’t see any real reaction on structures until we see the specifics.”