December / January 2007 Issue

Should the UK go ahead with plans to implement a 18 percent capital gains tax, will it take a step further to introduce an overarching anti-avoidance legislation to stop the move from income to capital? If so, should it rule with a heavy hand or principles? 

Recent modifications to the US-Canada tax convention mean more opportunities for US private equity investments in Canada, but significant tax risks exist for the unwary. 

It’s not enough to know about UBIT – unrelated business income tax can influence decisions limited partners make in the US. Here are some ways to think about, and minimize, UBIT. 

Given how many countries are currently reviewing the tax status of private equity, offshore jurisdictions are poised to continue their substantial role in the industry. Here’s a review of the states of tax law in some of the more popular offshore destinations for the asset class. 

Amid the chorus of opinions on the taxation of carried interest in the US, PEI Manager hosts the definitive debate between two US tax experts with opposing views on the issue. 

Weil Gotshal followed its private equity clients all the way to Asia, first in Shanghai, and now Hong Kong. 

Crossbow Ventures presents a uniquely global recipe for VC success, with partners from Zurich, Mumbai and New York, backed by Swiss institutional LPs. The firm is focused on sourcing deals in what is widely viewed as an innovation hotspot: the Southeast US. 

The private equity behemoth has hired its first general counsel, HR chief and information chief, as it leases additional Manhattan real estate for certain ‘administrative functions.’ 

A good relationship with your LP base begins with keeping people’s names straight, which can be challenging in a market with massive turnover. 

The new service opens up a treasure trove of historic returns private equity information. 

The millions of dollars that private equity firms have poured into lobbyists’ coffers appear to have paid off, as US legislators have – for now – relented on legislation that would have more than doubled the tax on carried interest.

New rules targeting US tax preparers are bringing grief to private equity partners. 

Sir David Walker has published his long awaited report on disclosure and transparency in private equity in the UK. Is compliance with his recommendations enough to stave off government regulation? 

Minimising the impact of financial crisis on private equity funds and venture capital funds 

The alternative investment firm has hired a former Capital One executive to lead its marketing efforts 

The technology group of law firm Lowenstein Sandler recently released results of its Third Annual Venture Terms Survey, which polled 39 senior investment professionals and general counsel at venture capital and private equity firms across the US. The firm cautioned that its survey is more “impressionistic” than empirical. 

The management teams at private equity portfolio companies in Europe are asking for higher equity values of the business – and getting it. Separate financial advisors, long-standing management teams and secondary sales will likely sustain the movement towards enhanced management equity yields. 

When structuring a distressed fund, a hybrid model may offer the best qualities of both hedge funds and private equity funds. 

Running the finance function at global, multi-office private equity firms is best done through optimizing the mix of centralized and outsourced functions. 

While most emerging markets private equity firms pride themselves on a local presence, quite a few maintain offices based in the West to foster relationships with investors and coordinate funds in multiple geographies. 

Some emerging market GPs are becoming regional champions by expanding into even less developed, neighboring locales.

Associates at US law firms are enjoying increasing salaries and bonuses. 

IDFC Private Equity is has a unique structure to address a singular problem. The publicly listed private equity vehicle is partially owned by the government of India. It brings a private equity approach to a big opportunity – infrastructure. 

General counsel at private equity firms must juggle relationships with multiple external legal professionals. 

The hubbub over Wall Street’s hard-to-value assets has relevance to private equity. 

Cindy Wenig joins Apollo Real Estate Advisors as general counsel. 

The US government’s concerns over national security are likely to increasingly hamper the sale of stakes in management companies to sovereign wealth funds. 

California has unveiled an official definition of ‘venture capital firm.’

EVCA has argued that the Walker Report should address its reservations in order to become a ‘European benchmark.’ 

The US House of Representatives has narrowly passed a bill that aims to raises taxes on private equity and hedge fund managers by roughly $48 billion. The bill now heads to the Senate, and if approved, is likely to be vetoed by President Bush.