Within the broad category of closed-end private funds, the distinct types of assets targeted by each area of the industry (e.g.
, real estate, debt, etc.) can prompt drastically different approaches to structuring funds to ensure optimal tax treatment of investors. To obtain an overview of relevant tax provisions and guidance on approaches to structuring different types of private funds, Strafford CLE Webinars recently hosted a webinar featuring Mayer Brown partner JoonBeom Pae; Ashurst partner M. Sharon Kim; and DLA Piper partner Shiukay Hung. This second article in a two-part series analyzes typical PE fund structures; specific considerations and structures for real estate and credit funds; and unique issues that may arise from subsequent closings and the SEC’s proposed rules on GP clawbacks. The first article
considered some central tax provisions that PE sponsors must weigh when forming funds for non‑U.S. and other tax sensitive investors. See “Notable U.S. Tax Developments Affecting PE Sponsors, Including Potential Rebirth of Significant BBBA Provisions in 2022 (Part One of Two)
” (Jan. 25, 2022).