Delegates at the 2014 forum heard about the challenges around automating the carry waterfalls process – something that’s still true nearly a decade on.
Earlier efforts to reform carried interest taxation had stalled, before US Senator Joe Manchin announced on Wednesday that he and Senate Majority Leader Chuck Schumer had worked out a deal.
A House bill, as currently written, came as a surprise to the market, as other regulatory, inflation and competitive headwinds abound in private equity. But Fall Forum panelists kept their chins up about the future.
A US Chamber of Commerce report predicts the tax could see the PE/VC industry shrink by nearly 20%. But a House committee moved to take its edge off, and one finance exec shrugs at even the worst proposals.
Growth in separate accounts and retail evergreen products means the investment firm’s carry mix will change, its vice-chairman said on its latest earnings call.
Apollo's Fund VIII returned to paying carry after recovering from the 21.6% devaluation of its private equity portfolio in the first quarter of last year.