Forgone Fees Bode Well for PE

Management fee waivers have received scrutiny from the IRS and the New York Attorney General, but recently the IRS has indicated it will not take a stance regarding these waivers. Instead, it reserve the right to examine a waiver structure during an audit. This article discusses the implications of the management fee waiver controversy and why private equity partners should consider management fee waivers for a special profits allocation.

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