Thursday, June 24, 2010

Carlyle Group & Chinese Taxes

The Carlyle Group may have to pay Chinese capital gains taxes of 10% on its profit from Yangzhou Chengde Steel Tube Co. Dow Jones reported:

"It's obviously not great, but I think it's fair," said one investor at a multibillion dollar private-equity fund with operations across the Asia-Pacific region. "We'll just have to bake [the taxes] into our return calculations."

Oddly, David Rubenstein and company have taken a different strategy on carried interest taxation. Cash rich private equity underwriters (PEU's) fight it tooth and nail.