What would happen to PE returns if the carried interest loophole was closed?

I worked in public equities so I don't deal at all with carried interest. Just curious, I think PE does about mid-teens LT returns (coming down rapidly). What would closing the carried interest loophole do to the returns, would it go from 13-15% to 7-9%? Under / over / etc?

Comments (3)

  • Analyst 2 in IB-M&A
1y 

You would lose all motivation in the industry and everyone would move to Texas and Florida. Returns would drop from 30/50% IRRs at the top funds to -35% as you have to pay rent to be in the industry.

  • 1
1y 
calvincoolridge, what's your opinion? Comment below:

Just fing lol at the democrats leaving the carried interest loophole out of their tax bill.

They whine about when not in power.

Guess the limousine liberal party of wallstreet democrats caved.

Array
1y 
m8, what's your opinion? Comment below:

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