Blackstone warns of tax rise effect on profits
Private equity firm warns that tax rises in the US could raise costs, just prior to its launch on the NYSE
US plans to end tax privileges for private equity firms could hit the profits
of Blackstone, the company revealed.
Blackstone, which is set to list on the New York Stock Exchange, said that it
recognised that the tax rise could affect its costs but did not lower its offer
price, The Guardian reported.
A bill is progressing through the US house that would force private equity
firms to pay capital gains tax of 35% rather than the 15% that they can pay
under current law.
Blackstone was expected to raise $4.7bn (£2.4bn), valuing the firm at $33bn.
Meanwhile, UK union leaders continued their attack on the private equity
industry yesterday, calling for the Treasury to widen its scope of investigation
into the industry to encompass the tax privileges of PE chiefs.