Tax Considerations Post-Election for Private Markets

This white paper outlines the potential tax impacts following the 2024 US presidential election on the Private Markets industry. It examines critical areas such as capital gains tax rates, carried interest reform, corporate tax rates, and interest deductibility, which could significantly affect investment strategies and fund performance. The document details proposed changes, including the possibility of raising capital gains tax rates and altering the tax treatment of carried interest, which could disrupt existing compensation structures for fund managers. It also discusses the implications of corporate tax rate changes on portfolio companies and the importance of monitoring state and local tax developments. Additionally, the paper highlights the potential effects of the Inflation Reduction Act on investment strategies, particularly concerning green energy incentives. The conclusion emphasizes the need for Private Markets funds to stay informed and proactively plan for these changes to maintain competitive advantages and maximize investor value.