Private Equity in America: End of an Era!

Private Equity

Could private equity firms join reinsurance companies and mutual funds in going abroad due to increased taxes and regulations? Without a question, this could happen if Congress and the Obama Administration move forward to change the tax treatment for private equity and hedge fund income from the present 15% for capital gains to that of 35%, the top rate for income. This “carried interest” rule has come before Congress and never moved, … [Read more...]

Top U.S. Lawmaker Disagrees with EU Hedge Fund Rules

According to various news sources, Senator Charles Schumer, Democratic U.S. Senator, is threatening to block European alternative investment funds from marketing or raising money in the U.S. if the European Union (EU) adopts new regulations that have a similar effect on American funds in Europe. … [Read more...]

The SEC is Shaping Up

The Securities and Exchange Commission is shaping up for another competitive year by restructuring its Enforcement Division unit, establishing five high priority areas.   These areas focus on market abuse, structured and new products, foreign corrupt practices, and municipal securities and public pensions.  Also, one of these areas will focus on hedge funds and private equity firms.  The SEC faced high criticism for failing to detect … [Read more...]

Private Equity Firms are Skeptical About 2009 Recovery

According to a survey conducted by Rothstein Kass in May 2009, private equity industry is skeptical about current market rally.   Based on survey, more than 90% of middle-market private equity fund managers believe that the credit crisis will last into next year. Despite that pessimism, most firms hope to raise capital this year and plan to take a more active role in running their portfolio companies to combat the weak economy.  More … [Read more...]