|
|
|
|
|
|
|
|
|
|
Special Edition: Private Markets and The Big Beautiful Bill
|
|
|
|
|
|
|
|
Earlier this month, Congress passed one of the biggest and broadest tax bills in our nation’s history. It could take months, if not years, for the ramifications of the newly passed law to fully play out. But for many private-markets investors, the final version was free of several proposals that were most worrisome.
We have compiled some of our best stories from the past couple of weeks about the new bill’s implications. Our teams of reporters here at WSJ Pro looked at its potential impact both broadly and more narrowly within specific sectors, such as renewable energy and healthcare.
We hope you enjoy this special edition.
|
|
|
|
|
|
How Private Equity Avoided Major Tax Hits From Trump’s Big Bill
|
|
|
|
|
|
|
President Donald Trump shows his signature after signing his 'Big Beautiful Bill' on July 4. Photo: Bonnie Cash / Pool via CNP / ZUMA Press
|
|
|
|
|
|
The Republicans’ huge tax-and-policy bill mostly left private equity alone, and the industry is just fine with that, as WSJ Pro Private Equity’s Chris Cummings and Rod James report. Private-equity lobbyists spent more than a year in behind-the-scenes negotiations for the One Big Beautiful Bill Act that President Trump signed into law on July 4. The industry mobilized to defend its most valuable tax provision—the treatment of carried interest as capital gains—from Trump’s threats to eliminate it, and to make sure the industry didn’t suffer unexpected losses in the Republicans’ sweeping overhaul of the tax code.
|
|
|
|
|
“The bill marks an industrywide win by maintaining key provisions,” but there are some private-capital strategies that are negatively impacted, including private-capital impact funds and certain infrastructure funds.”
|
|
— Tiger Hill Partners founder James Maloney
|
|
|
|
|
|
|
|
|
|
|
|
New Tax Law Sweetens VC Secondary Deals
|
|
|
|
|
|
|
The venture secondary market could see a boost from President Trump’s new tax-and-spend law. Photo: Ken Cedeno / Reuters
|
|
|
|
|
|
Tucked into the “Big Beautiful Bill” is a new incentive for shareholders of venture-backed startups to sell their shares on what is known as the secondary market. Investors don’t expect the change to trigger a stampede of sellers, but they say cashing out earlier is now a bit easier, WSJ Pro Venture Capital's Marc Vartabedian writes. The new tax-and-spend law expands the Qualified Small Business Stock tax exclusion to allow investors in startups to sell more of their holdings early without paying capital-gains taxes.
|
|
|
|
|
|
Executive Order Forms New Clouds Over Renewable Energy
|
|
|
|
|
|
|
The 'Big Beautiful Bill' will significantly affect solar energy and electric vehicles by phasing out or restricting tax credits and incentives. Photo: John G Mabanglo / EPA / Shutterstock
|
|
|
|
|
|
An executive order President Trump issued last week created fresh uncertainties for renewable-energy investors, including private-equity firms, only days after the passage of his tax-and-spending bill encouraged developers to start new projects within the next year, WSJ Pro Private Equity’s Luis Garcia writes. Concerns about the Trump administration’s clean-energy policies, particularly on tax credits, since his November election have made it more difficult for wind and solar developers to finance new projects, leading to delays and cancellations, according to industry analysts.
|
|
|
|
Other Stories in This Edition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
