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Chart of the Week: Study Says 23.1% Of NA Buyout Funds Can Amend Partnership Pacts If Carried Interest Tax Rate Change

Carried interest is under review in Washington, D.C., as policymakers consider taxing it as ordinary income. A change in tax treatment could be a problem for the private equity industry. The standard carried interest rate remains 20 percent. According to Buyouts and VCJ’s PE/VC Partnership Agreement Study 2012-2013, about 23.1 percent (nearly one in four) North American buyout funds in the sample have the right to amend partnership agreements if carried interest tax rates change. (For a larger version of the chart, click the link at right.)