Carried Interest Calculation amp Tax Loophole Understanding PE amp VC
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=TYvKNPavzpk
We learn what carried interest is and how to calculate it for PE VC funds, and also discuss the carried interest tax loophole. • β Download the Excel template: http://bit.ly/carried_int • π If you want to master the finance skills frameworks to successfully scale technology startups, secure your spot in my Finance for Startups program, today: https://www.ericandrewsstartups.com/f... • Communities: • πΌ Linkedin: / eric-andrews-1624b656 • βοΈ Twitter/X: / eric__andrews • π Instagram: / ericandrews_startups • π₯ Discord: https://bit.ly/discord_eric • π» Newsletter: https://bit.ly/joinericnewsletter • π₯ Clips: / @ericandrewsclips7818 • Related Financial Modeling Videos: • π© How to Build a 3-Statement Financial Model: • 3 Statement Financial Model | Buildin... • π© Solving a Finance Case Study | Interview Prep: • Finance Case Study Example | Finance ... • β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬β¬ • Private fund managers - whether in private equity, venture capital, or hedge funds - make the vast majority of their money from a share of the profits that their funds generate - this is called carried interest. • The general structure of a fund is that on one side you have investors in the fund - they are called limited partners. On the other side, you have the team that manages the fund and investments - they are called general partners. • The general partners charge fees and take a percentage of profits from the fund returns (carried interest) in exchange for managing the money. This basic setup is the same for most private funds. • But for certain types of funds, the carried interest has a favorable tax treatment. This is what we refer to when we are talking about the carried interest loophole (tax loophole). • In this video, we talk step-by-step through an example breaking down the carried interest calculation as well as an analysis of the carried interest tax loophole and who it benefits. • SECTIONS: • 0:17 intro to carried interest the tax loophole for VC PE • 1:22 structure of a private investment fund (operations, fees carried interest calculation) • 6:18 how carried interest is classified and taxed (PE VC vs. hedge funds) • 10:16 debate around the carried interest tax loophole - the two sides of the argument • I hope that you can now understand what carried interest is and the tax loophole associated with it. If you have questions - please leave comments below and I'll try to help. Cheers! • βΊ Subscribe for more finance videos: https://bit.ly/EricAndrewsSubscribe • #carriedinterest #taxloophole #venturecapital
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