Setting an example

Much of the global backlash against private equity is noise - distracting but harmless. But there is one area where the industry is particularly vulnerable: tax. The US Senate is now honing in on this vulnerability, with an investigation into the tax treatment of private equity’s performance fees, known as «carried interest». In the United States, as in the United Kingdom K, private equity benefits from a remarkably generous loophole whereby carried interest is treated as capital, not income. ...