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Carried Interest Debate (Wiki Page) (view source)
Revision as of 15:12, 7 June 2016
, 15:12, 7 June 2016→What is a Private Investment Fund?
In reality, the lines between these types of funds can often be blurred, but the key distinctions can be summarized as follows:
*Private equity funds generally invest in large companies with the intent to restructure and sell the firms for a gain. These investments usually entail the acquisition of private companies, but they may also involve acquiring controlling interests in public companies through stock purchases. Private equity funds usually employ a long-term, hands-on approach to investment.
*Venture Capital funds *Hedge funds, alternatively, focus on achieving high returns through risky, short-term investments that may come in the form of stocks, bonds, commodities, derivatives, and anything else that promises a quick gain. Accordingly, hedge funds do tend not to adopt the same hands-on approach to investment that venture capital funds and private equity funds take. ==What is carried interest?==Recall the structure of a private investment fund. ==What is the debate?==
http://www.taxpolicycenter.org/briefing-book/what-carried-interest-and-how-should-it-be-taxed
