Thursday, June 10, 2010

PEU's Meet Behind Closed Doors with Key Legislators

AltAssets reported on the move to tax carried interest as income:

A US bill being drawn up at Capitol Hill to tax private equity underwriters' carried interest as income could decimate investment in the country, according to an industry association.

Representatives from five of the 12 PEC member firms reportedly met behind closed doors with key legislators this week in a bid to overturn the proposed measures. Apollo Management’s Leon Black, Steve Schwarzman of Blackstone, TPG’s David Bonderman, Carlyle’s David Rubenstein, Glenn Hutchins of Silver Lake Partners, along with Wes Edens of non-member Fortress Investments, all met with Capitol Hill officials.

The PEU lobby predicts "the tax hike could reduce US private equity investment by $7bn a year." Heavy hitters tried to mobilize enough Red and Blue Congressional Corporacrats to stave off "carried interest" taxation for the fourth time. The Senate is the battleground, where literally every vote counts.

The White House also caters to PEU's. Consider in person visits made by the aforementioned:

David Rubenstein - 9
Steve Schwarzman - 6
Glenn Hutchins - 2
Wes Edens - 1

That's not counting conference calls. Elected leaders seek PEU counsel.

Update: BusinessWeek reported Rubenstein has Senator Evan Bayh on his side. That's not a surprise, given Carlyle's position as Bayh's #8 lifetime donor.