The Collateral Effect of Carried Interest Tax Proposal on Fee Waivers
Private Wealth Services Partner Bradley Van Buren authored a Law360 article titled "The Collateral Effect of Carried Interest Tax Proposal on Fee Waivers."
The most recent proposal to alter the tax treatment of carried interests came on Sept. 12 when President Obama submitted to Congress the American Jobs Act of 2011. According to Mr. Van Buren, since the submission of the act, investment managers and their advisers have predominantly focused their attention on the specific effect such proposal will have on a manager's carried interest; however, many may have not considered the collateral effect the proposed legislation may have on the profits being received by a manager in connection with a profits interest received in lieu of waived management fees (sometimes called a fee waiver interest).