August 23, 2015 Nir Yarden

New Proposed IRS Regulations: Investor + Manager Considerations

Selective focus on the watch on the hand of busy man wearing white shirt tie and blue jacket

In late July, the IRS released new proposed regulations related to certain manager fee waiver and profits interest arrangements. The release has important implications for both managers and investors. To date, little attention  has been paid to how the proposed IRS regulations impact investors. In this video, Nir Yarden and David Spencer, a tax lawyer, discuss the IRS release and practical issues that both managers and investors should consider.

The topics in this video include:

0:00 – Background
2:51 – Investment Fund Fee Waiver Arrangements
4:25 – Aggressive Approach Example
6:07 – Conservative Approach Example
7:09 – New Direction? Potential IRS Audit Concerns
9:20 – Profits Interest
10:42 – Manager Considerations: Economic Risk
13:27 – Investor Considerations: Notices, Operating Agreements and Risk Management

Tagged: , , , , , , , , , , ,