News & Analysis as of

Carried Interest

Goodwin

Managing Economics and Conflicts in GP-Led Continuation Vehicles

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Continuation vehicles — newly established investment entities created to acquire one or more assets from an existing fund managed by the same sponsor — have moved from being a niche liquidity solution to a mainstream...more

McDermott Will & Schulte

The insider’s guide to evergreen funds

Lately, all eyes seem to be on evergreen funds. Among private credit funds, they have emerged as one of the hottest fund formats in recent years – but despite their growing popularity, these funds can be complex, and their...more

Ropes & Gray LLP

Legal Lingo: Carried Interest Taxation - Don’t Get Carried Away!

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Being an aspiring commercial lawyer often means being confronted by complex, often abstract, concepts leading to an often impenetrable wall of jargon for students and trainees....more

Amundsen Davis LLC

Drafting Preferred Return and Other Waterfall Provisions in Real Estate Operating Agreements: Best Practices for Lawyers and...

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Preferred return and waterfall provisions are the backbone of economic alignment in the operating agreements that govern real estate joint ventures. Whether structured around Internal Rate of Return (“IRR”) hurdles or equity...more

Mayer Brown

Considerations in Continuation Vehicle Transactions

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CONTINUATION VEHICLES - Continuation vehicles are a tool to allow a sponsor to transfer one or more portfolio assets from an existing fund to a new, sponsor‑affiliated vehicle to extend ownership and pursue additional...more

White & Case LLP

Structuring GP stakes investments: Practical considerations for stakeholders

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The "GP stakes" market has grown significantly, with total deal value reaching over approximately $20 billion in 2025 according to data available from With Intelligence highlighting its shift from a niche to a mainstream...more

Mayer Brown

Fundamental Changes to the United Kingdom's Taxation of Carried Interest Regime

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WHAT HAPPENED? The Finance Bill 2025/26 proposes substantial changes to the United Kingdom taxation of carried interest....more

Herbert Smith Freehills Kramer

Luxembourg’s new carried interest tax regime is in force

The new carried interest regime applicable to Luxembourg‑resident individuals provides for: A reduced personal income tax rate of 11.45% on contractual carried interest, i.e. carried interest not materialised through a...more

DarrowEverett LLP

Qualified Clients, Accredited Investors, and Performance Fees in Private Funds

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For fund managers, general partners, and sponsors operating private investment vehicles, understanding the regulatory framework governing performance-based compensation is essential....more

A&O Shearman

Luxembourg Revamps Its Carried Interest Tax Regime

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Eagerly awaited by the Luxembourg asset management industry, the Luxembourg parliament finally adopted bill of law n° 8590 on January 22, 2026 to revamp Luxembourg’s carried interest tax regime. The amendments aim to clarify...more

Hogan Lovells

Luxembourg - New attractive carried interest regime

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On 22 January 2026, the Luxembourg parliament adopted a reform of the carried interest regime (the “Law”)1, aiming at extending its benefits, making it more attractive, and clarifying its tax treatment. This reform2,...more

White & Case LLP

Luxembourg Confirms A Clear And Competitive Carried Interest Framework

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Luxembourg has formally adopted its new carried interest regime on 22 January 2026, marking a key milestone in the modernisation of its tax framework for private capital and asset management. This adoption follows the...more

Goodwin

Unlocking the UPREIT Structure: A Comprehensive Guide to LTIP Units as Currency for Incentive Equity Awards

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The umbrella partnership real estate investment trust (“UPREIT”) structure, a cornerstone of the modern REIT industry, provides REITs with powerful tools for both property acquisitions and executive compensation. ...more

Katten Muchin Rosenman LLP

Retail Capital in Private Markets: Key ILPA Takeaways

Following changes announced by the US Securities and Exchange Commission (SEC) in August 2025, the Institutional Limited Partners Association (ILPA) has recently published an analysis underscoring a structural shift as US...more

Ropes & Gray LLP

Private Capital: UK and EU Tax Themes and Initiatives to Be Aware of in 2026

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As the private capital industry looks ahead to 2026, the UK and EU tax landscape is set to present both challenges and opportunities. Recent developments and ongoing policy initiatives will have a direct impact on deal...more

Walkers

Launching your first fund: Seven key considerations for emerging managers

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The journey from conceptual idea to launching a fund and taking on capital can be both exhilarating and daunting for new and emerging fund managers....more

Levenfeld Pearlstein, LLC

The Tax Strategy Private Equity Can’t Ignore

Establishing a non-grantor irrevocable trust in certain favorable states has long been a pillar of tax and estate planning for high-net-worth individuals and families. One of the most popular states to establish such a trust...more

The Rodman Law Group, LLC

Unlocking Tax Efficiency: Management Fee Waivers Explained

A manager of a private investment fund may consider employing a management fee waiver strategy, under which the manager waives its management fees in exchange for a profit interest in the fund (typically organized as a...more

DLA Piper

UK Carried Interest: Key Legislative Updates

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On 4 December 2025, the UK Government published the Finance Bill, which contains updated draft legislation relating to carried interest. On the same date, HMRC published an overview of the carry legislation, and draft...more

Allen Matkins

Equity Compensation and Profits Interest Incentive Structures in Companies

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With the end of the fiscal year approaching, we continue to see an uptick in the number of clients seeking counsel on structuring equity incentive plans. As our clients take a look back at the prior year’s performance and a...more

DarrowEverett LLP

Navigating Complex Asset Valuation in High-Net-Worth Divorces

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In high-net-worth (“HNW”), what you own is rarely the real battle, it’s what those assets are truly worth. HNW divorces bring unique financial and legal challenges that go far beyond traditional marital estate division....more

DLA Piper

UK Autumn Budget 2025 – Investment Funds

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The main headline for investment managers is that the carried interest reforms have been confirmed, with the Finance Bill 2025-26 set to be published next week. While some changes have been made to the draft legislation...more

Ropes & Gray LLP

Don’t Slip: Navigating the Private Equity Waterfall

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Being an aspiring commercial lawyer often means being confronted by complex, often abstract, concepts leading to an often impenetrable wall of jargon for students and trainees. Next up in our Legal Lingo series, which we've...more

Tarter Krinsky & Drogin LLP

Joining a Multi-Strategy Hedge Fund? Don't Overlook the Immediate Estate Planning Opportunity

Landing a portfolio manager role at a top multi-strategy hedge fund can be a career-defining moment. It can also catapult your personal net worth into the stratosphere overnight. Rapid wealth creation comes with a new...more

Goodwin

UK Carried Interest Tax Regime - Finance Bill 2026

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In late October of 2024 the UK Government announced its plans to bring carried interest within the income tax regime from April 2026, to be taxed as deemed trading income, subject to an effective tax rate of 34.1%....more

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