Injecting a Dose of Reality On Private-Equity Returns
Evening Standard - London › July 31, 2007
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Summary
IT WAS appropriate, on the day that the Treasury Select Committee published its call for an examination of the way private equity is taxed in the UK, that a robust defence of the regime should appear in a letter to the Financial Times. But in making his case, Philip Shuttleworth, chairman of the British Venture Capital Association, said that only about half of private-equity funds actually pay out carried interest.
It is worth spelling out what that means. Carried interest normally kicks in once profits pass a threshold, which varies between 8% and 10% depending on the fund, and from a number usually struck after the deduction of all management charges.See the full content of this document
Extract
Injecting a Dose of Reality On Private-Equity Returns
So what Shuttleworth says is that half the private-equity funds fail to deliver a return in excess of 8% to 10% net of charges, otherwise they would be paying carried interest.
This, incidentally, ties in with the claim frequently made by the ind...See the full content of this document
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