Investing in Africa probably doesn’t sound too lucrative to your average fund manager. The thought of investing in Africa probably seems too risky to most investors with its inadequate infrastructure, corruption, and weak rule of law, the negatives seem to outweigh the positives. Despite these concerns, though, investment in Africa is becoming much more popular,…
Author: Bryan Card
How Private Equity Can Hedge Their Bet with ObamaCare
The Affordable Care Act, also known as ObamaCare, came into effect earlier this year. Not surprisingly, ObamaCare has proven to be an extremely controversial and divisive issue. Many opponents of ObamaCare argue that the law will prove to be extremely detrimental to the economy by burdening companies with increased costs and regulations.1 The relevant topic…
To Go Public or Not to Go Public? The Pros and Cons of Publicly Traded Private Equity
In private equity, one of the main strategies employed by private equity firms when purchasing a public portfolio company, is to subsequently take that company private. This is believed to be beneficial because it allows the private equity fund and the management of the portfolio company to operate the business without pressure from shareholders, allowing…
PE Firms Managing Tax Rates: Is the Management Fee Waiver Legal?
Private equity firms are no strangers to controversy when it comes to their compensation arrangements. In the most recent presidential election, Mitt Romney and the entire private equity industry came under intense scrutiny from both the electorate and politicians for the tax rate paid on carried interest. Carried interest is taxed at the capital gains…