Regulation and Tax Plans Put Squeeze on Industry

"The U.S. Congress and the UK's new coalition government are both considering a potential rise in carried interest taxation.

Meanwhile, two important votes on the European Union's Alternative Investment Fund Managers Directive added to already controversial legislation the prospect of leverage limits and disclosure requirements for an increased number of companies.

'With the twin spectres of regulation and tax, this is an industry that is feeling a bit under siege' [said] Lisa Cawley, partner at law firm Kirkland & Ellis."

This article appeared in its entirety in the May 24, 2010 edition of Private Equity News.