Carried Interest Debate (Wiki Page) - Revision history

Juliette.richert at 16:02, 27 March 2017

2017-03-27T16:02:52Z

Juliette.richert at 16:57, 24 March 2017

2017-03-24T16:57:40Z

Juliette.richert at 17:54, 6 March 2017

2017-03-06T17:54:49Z

Juliette.richert at 17:54, 6 March 2017

2017-03-06T17:54:21Z

Juliette.richert at 17:53, 6 March 2017

2017-03-06T17:53:55Z

Juliette.richert at 17:53, 6 March 2017

2017-03-06T17:53:18Z

Juliette.richert at 17:50, 6 March 2017

2017-03-06T17:50:16Z

Juliette.richert at 17:27, 6 March 2017

2017-03-06T17:27:05Z

Juliette.richert at 17:26, 6 March 2017

2017-03-06T17:26:48Z

Juliette.richert at 17:25, 6 March 2017

2017-03-06T17:25:38Z

@@ Line 60: / Line 60: @@
 [[Internal Classification: Wiki Page| ]]
 </includeonly><!-- flush -->
-[[Category:Internal]]
 [[Category:Innovation Policy]]

← Older revision		Revision as of 16:57, 24 March 2017
Line 61:		Line 61:
	</includeonly><!-- flush -->		</includeonly><!-- flush -->
	[[Category:Internal]]		[[Category:Internal]]
		+	[[Category:Innovation Policy]]

@@ Line 5: / Line 5: @@
 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 acquiring controlling interests in public companies through stock purchases, but they may also involve acquiring private companies. In the case of the public company, funds oftentimes take the company private before the resale or new initial public offering. The process by which private companies are brought to liquidity is similar sans the return from public to private. Private equity funds usually employ a long-term, hands-on approach to investment.
-*Venture Capital funds aim to invest in high-tech startups with high-growth potential in exchange for a stake in the company. Once the fund purchases a stake in the company, it also provides coaching and other services to the company in order to increase its chances of success. Similar to private equity funds, venture capital funds invest with a hands-on, long-term strategy with the eventual goal of a liquidity event, i.e. a(n) acquisition, merger, or initial public offering. (more about VC [[Defining Venture Capital (Blog Post)| here]])
+*Venture Capital funds aim to invest in high-tech startups with high-growth potential in exchange for a stake in the company. Once the fund purchases a stake in the company, it also provides coaching and other services to the company in order to increase its chances of success. Similar to private equity funds, venture capital funds invest with a hands-on, long-term strategy with the eventual goal of a liquidity event, i.e. a(n) acquisition, merger, or initial public offering (more about VC [[Defining Venture Capital (Blog Post)| here]]).
 *Hedge funds tend to 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 tend not to adopt the same hands-on approach to investment that venture capital and private equity funds do.

@@ Line 5: / Line 5: @@
 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 acquiring controlling interests in public companies through stock purchases, but they may also involve acquiring private companies. In the case of the public company, funds oftentimes take the company private before the resale or new initial public offering. The process by which private companies are brought to liquidity is similar sans the return from public to private. Private equity funds usually employ a long-term, hands-on approach to investment.
-*Venture Capital funds aim to invest in high-tech startups with high-growth potential in exchange for a stake in the company. Once the fund purchases a stake in the company, it also provides coaching and other services to the company in order to increase its chances of success. Similar to private equity funds, venture capital funds invest with a hands-on, long-term strategy with the eventual goal of a liquidity event, i.e. a(n) acquisition, merger, or initial public offering. (more about VC [[Defining Venture Capital (Blog Post)| here]]
+*Venture Capital funds aim to invest in high-tech startups with high-growth potential in exchange for a stake in the company. Once the fund purchases a stake in the company, it also provides coaching and other services to the company in order to increase its chances of success. Similar to private equity funds, venture capital funds invest with a hands-on, long-term strategy with the eventual goal of a liquidity event, i.e. a(n) acquisition, merger, or initial public offering. (more about VC [[Defining Venture Capital (Blog Post)| here]])
 *Hedge funds tend to 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 tend not to adopt the same hands-on approach to investment that venture capital and private equity funds do.

@@ Line 5: / Line 5: @@
 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 acquiring controlling interests in public companies through stock purchases, but they may also involve acquiring private companies. In the case of the public company, funds oftentimes take the company private before the resale or new initial public offering. The process by which private companies are brought to liquidity is similar sans the return from public to private. Private equity funds usually employ a long-term, hands-on approach to investment.
-*Venture Capital funds aim to invest in high-tech startups with high-growth potential in exchange for a stake in the company. Once the fund purchases a stake in the company, it also provides coaching and other services to the company in order to increase its chances of success. Similar to private equity funds, venture capital funds invest with a hands-on, long-term strategy with the eventual goal of a liquidity event, i.e. a(n) acquisition, merger, or initial public offering. (more about VC [[Defining Venture Capital (Blog Post)| link here]]
+*Venture Capital funds aim to invest in high-tech startups with high-growth potential in exchange for a stake in the company. Once the fund purchases a stake in the company, it also provides coaching and other services to the company in order to increase its chances of success. Similar to private equity funds, venture capital funds invest with a hands-on, long-term strategy with the eventual goal of a liquidity event, i.e. a(n) acquisition, merger, or initial public offering. (more about VC [[Defining Venture Capital (Blog Post)| here]]
 *Hedge funds tend to 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 tend not to adopt the same hands-on approach to investment that venture capital and private equity funds do.

@@ Line 19: / Line 19: @@
 Those in favor of the current treatment of carried interest argue that the general partner's role is more analogous to that of an entrepreneur. Just as an entrepreneur sells his or her business and is taxed at the capital gains rate, so too should the general manager be taxed on his or her realized gains at the capital gains rate. Further, it is claimed that a higher tax rate would reduce incentive for general partners to take risks. This lack of incentive would then discourage innovation and efficiency in markets. Although, it is not clear whether there is evidence for these claims or if the risks general partners take on provide a benefit to the economy as a whole[https://www.cbo.gov/budget-options/2013/44804].
-Owner: Jake Silberman
+==Related Pages==
 ==References==