Australia's determination this week that private equity profits may – in certain circumstances – be taxed as income rather than capital gains has left more questions than answers.
Offshore LPs invested with China-based private equity managers are concerned at the conflict of interest between USD-denominated vehicles and their RMB-denominated counterparts. But what can be done?
A pilot scheme would allow the conversion of up to 50% of an RMB fund from foreign currency, removing a huge hurdle facing foreign investors seeking access to China's private equity market.
Improved access to the estimated $1tr Shariah-compliant pool of capital in the MENA region may spur more firms to switch to Islamic private equity funds.
The Australian Tax Office's proposals for stricter tax rules on private equity investment stand to lose Australia its title as Asia's most investor-friendly investment destination.
Australia's draft rules on tougher tax for private equity deals lack an understanding of the asset class and will drive foreign investors from Australia, the Australian private equity association has said.