PE and the ‘Stop Wall Street Looting Act of 2019′ – pros and cons for Americans
Does the private equity industry need to be reined in? A look at both sides of the coin
Though the private equity industry is attracting unfavourable attention following its strident growth over the past five years, the underlying cause is the hunt for yield following relentlessly low interest rates.
In 2018, private equity deals grew 10% in number and 18% in dollar deal value over 2017.
“The rising deal value in 2018 capped the strongest five-year stretch in history, while deal count reflected stiff competition and rising asset prices,” said Bain & Co.
The imminent rate cuts predicted by Wall Street will only exacerbate the yield chase.
Proposed demand in “Stop Wall Street Looting Act of 2019”
The fundamental plank of the Act is to “fundamentally reform the private equity industry and level the playing field by forcing private equity firms to take responsibility for the outcomes of companies they take over, empowering workers, and protecting investors.”
- Bilge Yilmaz, Wharton Private Equity and Finance Professor and also Director of the Joshua J. Harris Alternative Investments Program: Carried interest taxation and service agreement fees are legitimate issues for discussion
- Steve Forbes, Editor-In-Chief: Hiking the tax on carried interest capital gains would discourage entrepreneurs
- Drew Maloney, president and CEO of the American Investment Council: [Concurred with Forbes]
- Lisa Donner, Executive Director of Americans for Financial Reform: The LBO model “desperately needs reform”
Latest Alternative Investment News
Proxy advisory firm Institutional Investor Advisory Services India Ltd. (IiAS) has issued a note ahead of PayTM’s (NSE: PAYTM) annual shareholders’ meeting on August 19 calling for the replacement of…
Lockheed Martin (NYSE: LMT) and its venture finance arm Lockheed Martin Ventures plans to boost the latter’s investment outlay from $200 million to $400 million.
PicPay, the well-known Brazilian payment app, has got its shoe in the crypto door in partnership with Paxos, a leading regulated blockchain infrastructure company. Picpay is opening crypto trading services…
BT (LON: BT.A), the telecom major, announced that Barclaycard Payments had joined its partnership network seeking to help the growth of UK microbusinesses. BT customers with 0-5 employees would get…