The New York Times has a fascinating read this morning about the political (and personal?) tiff between Michael Moritz of Sequoia Capital (Venture Capital) and Stephen A. Schwarzman, Blackstone Group (Private Equity) and the chairman of President Trump’s advisory business council. The article is a little “inside baseball” about the Private Equity and Venture Capital space, but shows how politics has infested that world. While that part is an intriguing read, the article defends the carried interest and interest deduction tax rules that are vital to the alternative investment community.
We are less than a month into the Trump administration and there is no GOP consensus yet on the details of tax reform. So, it too early to see if there will be significant changes to the carried interest or interest deduction rules. We will have more to say about carried interest and interest deductions in coming posts.