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Continuation funds at risk with new bill

Carry ‘clock’ proposal could kill continuation fund market; CFOs fret over tax proposals, and fear worse to come.

Tax: At Private Equity International‘s Fall CFOs & COOs Forum, held online yesterday and today, tax weighed heavy on the minds of panelists. A proposed bill from the US House, as written now, threatens to stymie the continuation fund market, one panelist said during a session in which other headwinds including inflation and high valuations were also addressed.

And Bill Myers reports that some were hopeful that the severity of the bill – which also proposes to raise capital gains and corporate taxes, and to limit tax breaks on transferring partnerships and make other changes to partnership law – might be mitigated as it makes its way through Congress. But they were more worried about the overall outlook for increased taxes, as government shortfalls loom and public markets get jittery.

Email prepared by Graham Bippart