Jennifer Harris

The US House of Representatives has approved a rule that would force private equity funds managing more than $150m to register with the SEC. The bill now goes to the Senate for a vote.

If carried interest is taxed as ordinary income in the US, American GPs will face much higher tax rates than some of their European peers.

A bill awaiting approval from the US Senate would impose a 30% withholding tax on US income for foreign fund managers who fail to agree to new transparency requirements.

US House Ways and Means Committee chairman Charles Rangel has introduced the Tax Extenders Act of 2009, which would tax carried interest as ordinary income rather than capital gains. Similar tax plans have come up short in the Senate.

If carried interest is taxed as ordinary income in the US, as is proposed by a new bill in Congress, GPs will have to make Medicare contributions of 2.9 percent out of their carry.

House Ways and Means Committee Chairman Charles Rangel has again proposed more than doubling the tax on carry, a measure the US government estimates would raise $25bn in tax revenue.

Last week the FBI raided the offices of Obsidian Enterprises in connection with a civil lawsuit filed against its CEO, Timothy Durham.

CDC and Norfund are among a group of LPs that want to ensure ‘the next generation of emerging market private equity funds are raised on terms that reflect the principles’.

The deal will dramatically increase the Connecticut-based financial software and services provider’s private equity client base.

A new compensation survey showing across-the-board reductions in private equity pay indicates that managers may have to lower their bonus expectations to pre-2006 levels for the near future.