Article: Warren Bill Presents Powerful Headwinds For Private Equity
November 25, 2019
Tax Partner Jonathan Brose and Senior Investment Management Associate Kevin Neubauer discuss the potential impact of the Stop Wall Street Looting Act of 2019 on the private equity industry in “Warren Bill Presents Powerful Headwinds For Private Equity,” published recently by Law360.
Among other things, the proposed legislation, put forth by Democratic Senator and presidential candidate Elizabeth Warren (co-sponsored by Senators Baldwin, Brown and Gillibrand), eliminates the favorable taxation of carried interest, makes funds and their owners potentially liable for portfolio company debt, further limits interest deductions by portfolio companies, imposes certain disclosure requirements and fiduciary obligations on private equity firms, limits post-acquisition dividends and distributions, and revises the bankruptcy rules for portfolio companies.
Seward & Kissel LLP recently held a webinar discussing the proposed legislation. To listen to the webinar, please click here.