Narrow Effort Won't Hit Partnerships in Other Fields
June 16, 2007, The Wall Street Journal

On June 16, The Wall Street Journal reported on a new tax law before congress that is likely to close a tax loophole enjoyed by some of private equity firms that are traded on the public market.  It targets asset management and investment advisory companies, and could impact the initial public offerings of companies like Fortress Investments and the Blackstone Group.  However, the proposed changes could spread to private equity firms doing business in other types of industries.

"I don't believe that this particular proposal would affect any partnerships beyond those firms that it seems to target," said Linda Carlisle, a partner in White & Case's Tax Practice in Washington, DC.  "But this is just the first volley and any time someone starts to look at the tax code, you don't know what will happen."