Private Equity News

Today’s announcement is not the end of the story, as Casey Dalton, partner at Herbert Smith Freehills, notes: “The decision to not introduce immediate reform (beyond the rate change from 28% to 32%) will be welcomed by some, as it allows for further consultation opportunities and time to plan. "However, whether the announcement of further reform and inclusion of carried interest within the income tax framework in April 2026 nevertheless influences taxpayers’ behaviour, especially when combined with the non-dom changes, remains to be seen."

"There will be much relief across the industry". The private equity industry reacts to tax changes in the UK Budget, with comments from FTI Consulting's Lewin Higgins-Green, OpenOcean's Ekaterina Almasque and British Private Equity & Venture Capital Association (BVCA) CEO Michael Moore

BREAKING: Private equity firms are to be hit with a tax rise on carried interest under new plans announced today by the UK government. “The fund management industry provides a vital contribution to our economy, but as our manifesto set out, there needs to be a fairer approach to the way carried interest is taxed,” said Rt Hon Rachel Reeves. She added: “We will increase the capital gains rates on carried interest to 32% from April 2025. From April 2026, we will deliver further reform to ensure the specific rules on carried interest are simpler, fairer and better targeted.”

The Financial Conduct Authority is preparing to ask private markets firms for more information about their businesses in a bid to get a better grip on risks in the sector. The City watchdog’s chief executive Nikhil Rathi said he wanted to “understand the market, not restrict it”, but transparency needed to improve. Article by Justin Cash

Exactech, a joint replacement implant maker backed by TPG Capital, filed for bankruptcy Tuesday, facing mass lawsuits alleging that its defective implants harmed patients. 

Private credit has been one of the fastest-growing businesses at alternative asset giants like Blackstone, Apollo Global Management, Inc., and Brookfield Asset Management, as well as specialists like Ares Management Corporation, Blue Owl Capital, and HPS Investment Partners, LLC. After quadrupling in the past decade to nearly $2tn in assets, private credit is as big as the market for banks’ syndicated loans.

Reminder: Entries for PEN's new real estate list close on Friday

Exclusive: One of the most senior figures in European private equity is launching his own firm after nearly two decades at Warburg Pincus LLC. London-based buyout veteran Adarsh Sarma is taking the rare step of becoming a debut manager, according to people familiar with the matter.

Speculation has been mounting over how chancellor Rt Hon Rachel Reeves plans to shake-up the current carried interest tax system in tomorrow's Budget.

Professionals with alternative asset managers saw average total compensation rise roughly 35% to $1.4m last year from 2022, according to a survey from recruitment firm Jensen Partners in New York.