Catherine Sear (Proskauer) considers how the income-based carried interest rules introduced by Finance Act 2016 apply in a fund of funds context.
Alongside other private fund managers ‘fund of funds’ managers must consider the application of the new income-based carried interest (IBCI) rules. A fund of funds as the name suggests is a fund investing in a portfolio of unrelated funds exposing investors to a range of funds to which they might not otherwise have access. This article focuses on those funds of funds investing in closed-ended private investment funds typically structured as limited partnerships. For simplicity these are referred to below as ‘private equity fund of funds’.
IBCI rules recap
In brief the IBCI rules can turn carried interest from funds with an average holding period of less than 40 months which would otherwise...
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Catherine Sear (Proskauer) considers how the income-based carried interest rules introduced by Finance Act 2016 apply in a fund of funds context.
Alongside other private fund managers ‘fund of funds’ managers must consider the application of the new income-based carried interest (IBCI) rules. A fund of funds as the name suggests is a fund investing in a portfolio of unrelated funds exposing investors to a range of funds to which they might not otherwise have access. This article focuses on those funds of funds investing in closed-ended private investment funds typically structured as limited partnerships. For simplicity these are referred to below as ‘private equity fund of funds’.
IBCI rules recap
In brief the IBCI rules can turn carried interest from funds with an average holding period of less than 40 months which would otherwise...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")