Nearly Half of Hedge Funds Debating Investment Strategies Under Tax Reform Proposal

CHICAGO (August 17, 2017) – A flash poll conducted by Baker Tilly Virchow Krause, LLP (Baker Tilly) indicates 40 percent of hedge fund and portfolio companies have discussed the Trump Administration’s outlined tax reform proposal and how it would affect their fund’s structure and investment strategy.

“The U.S. is often viewed as having one of the most complex tax systems and one of the highest relative corporate tax rates in the developed world,” Vadim Blikshteyn, CPA, senior tax manager for Baker Tilly’s financial services industry, said. “Political circumstances and conditions indicate that the U.S. Congress will very likely pursue and enact some form of tax reform legislation in its current term.”

“The proposed changes to the corporate tax rate may significantly impact the bottom line of many portfolio companies, especially corporations holding profits overseas,” Pietro Stuardi, CPA, MST, tax partner and Baker Tilly’s regional leader for international services, said. “With the possibility of this substantial change, private equity managers are closely monitoring the developments of tax reform in Congress so they can prepare for the impact it will have across the private equity sector.”

Baker Tilly recently held an educational webinar, “How will tax reform affect your fund and portfolio company?” to address tax planning strategies for hedge fund, private equity fund and portfolio companies under the uncertain future of the current tax reform proposals.

The webinar presenters discussed:

  • An overview of the Trump Administration’s tax reform proposal
  • Key tax reform areas that will affect hedge funds, private equity funds and portfolio companies
  • Tax planning areas to discuss with investors and management company principals
  • Potential tax reform risks and opportunities that can impact the calculus on portfolio deals

Presentation slides and a recording of the webinar are available at bakertilly.com/insights/how-will-tax-reform-affect-your-fund-and-portfolio-company.

About Baker Tilly Virchow Krause, LLP (bakertilly.com)

Baker Tilly Virchow Krause, LLP (Baker Tilly) is a nationally recognized, full-service accounting and advisory firm whose specialized professionals connect with clients and their businesses through refreshing candor and clear industry insight. With approximately 2,700 employees across the United States, Baker Tilly is ranked as one of the 15 largest accounting and advisory firms in the country. Headquartered in Chicago, Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 countries, with 30,000 professionals. The combined worldwide revenue of independent member firms is $3.2 billion.