Tag Archives: private equity funds

Unregistered Broker-Dealers and Private Equity Firms

On June 1, 2016, the Securities and Exchange Commission (the “SEC”) announced a settlement with Blackstreet Capital Management, LLC (“BCM”), a Maryland-based private equity firm, and its principal, Murry Gunty, that could negatively impact the ability of private equity funds to charge transaction fees in the future.[1]  Private equity funds have long charged fees at the closing of portfolio company transactions for their work in facilitating those transactions.  These fees have become an important aspect of private equity fund … Read More

Taxation of Private Equity and the 2016 Presidential Election

The taxation of carried interests is a common topic of discussion and something that is watched closely by private equity fund managers who derive substantial income from these interests.  As background, private equity fund managers derive much of their income from management fees and carried interests.  While management fees are taxed at ordinary income rates, payments made in respect of carried interests are currently taxed at the much lower capital gains rate of 20%, thereby allowing fund managers to receive … Read More

The VCOC Exemption and Initial Fund Investments

It is common for private equity funds to have limited partners that are pension plans or other retirement vehicles subject to ERISA (“ERISA benefit plans”).  By having ERISA benefit plan limited partners, the assets of the private equity fund will be considered “plan assets” subject to ERISA, unless the fund is able to avail itself of an exemption.  In the event a fund’s assets are deemed to be plan assets, the fund becomes subject to strict ERISA rules, including those … Read More