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By Diogo DUARTE de OLIVEIRA, Partner Chiara BARDINI, Tax Counsel, Baker McKenzie Luxembourg
A necessary, long-awaited reform
The term carried interest broadly refers to the portion of private equity (PE) key managers’ remuneration that is contingent upon the performance of the relevant fund. Carried interest constitutes the principal form of incentive for the founders and senior executives of Alternative Investment Funds (AIFs), ultimately playing a key role in determining the overall growth of the sector. Ensuring flexibility in the structuring of carried interest arrangements, together with an appropriate, well-defined and transparent tax framework, is therefore essential to securing the continued success of a centre...
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