Tax Issues for Secondary Sales of Private Funds: Transfer Restrictions, Fund Structures, Tax Elections, Allocations
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will provide guidance to tax counsel and advisers on critical tax considerations for secondary sales of interests in private funds. The panel will discuss tax and fund structuring challenges impacting the buyers, sellers and the fund, transfer restrictions, tax elections, allocation of tax and expenses, and tax withholdings. The panel will also offer fund structuring techniques to minimize potential implications in the event of a sale.
Outline
- Options for investors in liquidating fund interests
- Sale of fund interests to the secondary market
- Key tax considerations
- Best practices to avoid unintended tax consequences
Benefits
The panel will review these and other key issues:
- What options are available to investors in liquidating fund interests?
- What are the key tax considerations for investors selling their interests in private funds on the secondary market?
- What are the common transfer restrictions and resulting tax scenarios to examine?
- How do the fund structure and tax elections impact the sale of an investor's interests in a private fund?
- How can you avoid adverse tax consequences of a sale to a non-U.S. investor or tax-exempt investor?
- What issues arise with the allocation of taxes and expenses between buyer and seller?
- What are critical withholding tax issues to consider?
Faculty
Sharon Kim
Partner
Ashurst
Ms. Kim advises the firm's leading financial institution and investment fund clients and investors on the U.S. tax... | Read More
Ms. Kim advises the firm's leading financial institution and investment fund clients and investors on the U.S. tax aspects of financing, capital markets, and investments transactions, with an emphasis on U.S. tax matters relevant to cross-border transactions such as FATCA, general U.S. withholding tax, section 871(m), FIRPTA, and U.S. trade or business issues. She has extensive experience representing issuers of structured products and debt and equity securities, and advising lenders, borrowers, sponsors, managers and investors on U.S. tax matters in connection with credit facilities, private equity and debt funds, structured and derivative products, and securitization transactions, including CLOs and MBS.
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Matthew A. McDonald
Partner
Mayer Brown
Mr. McDonald is a partner in the Tax Transactions practice of Mayer Brown's Chicago office. As a member of the... | Read More
Mr. McDonald is a partner in the Tax Transactions practice of Mayer Brown's Chicago office. As a member of the firm’s Fund Formation & Investment Management practice, he regularly represents fund sponsors in all aspects of the structuring and operation of private investment funds with a particular focus on real estate and real estate-related assets. Mr. McDonald also represents a variety of taxable, tax-exempt and non-US investors in structuring tax-efficient investments in real estate, private equity and hedge funds. His experience includes matters involving the formation and operation of partnerships, limited liability companies and real estate investment trusts (REITs), foreign investment in the United States under FIRPTA and outbound investment in foreign jurisdictions. Mr. McDonald also advises U.S. and foreign corporations and partnerships on acquisitions, divestitures and other restructuring transactions.
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JoonBeom Pae
Partner
Mayer Brown
Mr. Pae's practice focuses on the tax aspects of the formation, financing and investment activities of domestic and... | Read More
Mr. Pae's practice focuses on the tax aspects of the formation, financing and investment activities of domestic and international private funds. He regularly advises both sponsors and investors in connection with structuring and operation of various types of funds, including buyout, infrastructure, real estate and debt funds. Mr. Pae is also experienced in secondary sale of fund interests and M&A transactions involving partnerships.
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