December 31, 2017

This article by MPI’s Daniel Kerrigan and Todd Povlich discusses a variety of topics relating to estate planning and valuation of “Carried Interest,” the dominant incentive mechanism for general partners and managing members of hedge funds, private equity vehicles and venture capital firms.  A core concept in estate planning is transferring those assets with the greatest growth potential.  Aside from certain venture capital investments, there may be no asset with greater growth or cash flow potential than carried interest. And, with new firm launches and fund formations a constant in the industry, the planning opportunities come frequently.  Kerrigan and Povlich cover the waterfront in this article, including discussion of commonly used estate planning techniques and the valuation methods they consider when a carried interest valuation is needed.

Click here to read the full article (subscription required) that explores valuation approaches for carried interest, unique transfer and gift tax considerations, and various transfer techniques.

For more information on the topic, contact Daniel Kerrigan or Todd Povlich.

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