Rethinking Carried Interest

In light of tax reform introduced in the US, some private equity and venture capital firms are revisiting their LPAs to change the way carry is paid out, David Helprin, a tax principal and a member of the financial services group at EisnerAmper, tells Private Funds Management in the magazine’s May issue.
 
One of the things that we are seeing, particularly in the private equity and venture capital world, is that people are considering looking at and amending their limited partnership agreements to determine when the GP will take their carry allocation from the fund. They are considering amending the agreement to allow them to not take carry on gains after less than three years, so they can defer them to gains that would exceed the three-year period.

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