Document Dump

Just clearing off the desktop…

* Law firm Paul Weiss this morning sent a client memo about how Congress might change tax laws affecting investment funds. Key line: “Significant consideration is also being given to carried interest issues, with the focus being whether to characterize that income as compensation for services and not as long-term capital gains.”
Download Doc: TaxMemo.pdf

Update: Buyouts Magazine reports that the effort is being advocated by the Sen. Charles Grassley (R-Iowa), the ranking Republican on the Senate Finance Committee. It also was told that the issue will be among the initial priorities of the newly-formed Private Equity Council. More info and analysis here and here.

* Law firm Weil Gotshal argues for private equity firms to reconsider their aversion to Brazil. Key line: “Brazil remains an attractive and relatively new market for private equity sponsors due to the recent developments surrounding investment liquidity, deepening of the Brazilian capital markets and improving legal and regulatory landscape.”
Download Doc: PE_Brazil.pdf

* Baird has put together a detailed 2007 M&A forecast for the middle markets. Key line: “This increase in take-private activity reflects not only the growing clout of private equity firms but also that of hedge funds and activist shareholders.”
Download Doc: Baird_MA Outlook_2007.pdf

* Putnam Novell NBF Securities with a look at the M&A market for the asset management sector.
Download Doc: PL 06 Review.pdf