Understanding Carried Interest in Private Equity (and how taxes impact it)
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Author:
Geoff Robinson -
Level:
Intermediate to advanced -
Study time:
10 minutes
Course overview
Private equity's "billionaire factory" is facing a watershed moment. For decades, the industry's carried interest system has enabled dealmakers to amass vast fortunes while paying lower tax rates than ordinary workers. Now, as the UK government announces dramatic changes to how these profits will be taxed, the spotlight is back on one of finance's most lucrative compensation mechanisms.
Understanding carried interest - how it works, why it exists, and why it's controversial - is key to grasping the forces shaping modern finance and the ongoing debate about fairness in our economic system. From token investments yielding massive returns to complex waterfall structures determining when profits flow, this is the story of how private equity creates extraordinary wealth and why the rules of the game might be about to change.
Available as part of our Premium Plus subscription tier.
Understanding carried interest - how it works, why it exists, and why it's controversial - is key to grasping the forces shaping modern finance and the ongoing debate about fairness in our economic system. From token investments yielding massive returns to complex waterfall structures determining when profits flow, this is the story of how private equity creates extraordinary wealth and why the rules of the game might be about to change.
Available as part of our Premium Plus subscription tier.
What's included?
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1 video
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What is carried interest and how does it work?
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Insights from a #1 ranked data-driven analyst
Who should watch this playlist?
Investment professionals, tax advisors, and anyone curious about how private equity creates wealth should tune in. Whether you're planning a career in finance, advising wealthy clients, or simply want to understand how the ultra-rich really make their money, this story matters.
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Geoff Robinson
FCA FMVA MFM
Thought leader, instructor, writer, financial influencer, Former UBS Managing Director and 8x #1 ranked analysts EMEA Institutional Investor Survey
ABOUT Geoff
Geoff has had a varied career. He was a Managing Director within UBS Equity Research, leading their Global Fundamental Analytics franchise. During this time, he was #1, ranked 9x in the EMEA Institutional Investor Survey. Before UBS, he was a material equity investor and LBO co-investor in two market exited training consultancies. Geoff has a passion for learning and is well-known for his ability to break down complex subject matter and distil it to an audience in a digestible and engaging manner. He brings this passion to TheInvestmentAnalyst.com.