Taking Private Funds Retail, RIC Qualification, and Dual Share Class Structures – Regulatory and Tax Issues

Investment management partners Leila Vaughan and Jillian Bosmann presented a two-session webinar titled “Taking Private Funds Retail, RIC Qualification, and Dual Share Class Structures – Regulatory and Tax Issues,” examining the growing trend of private fund sponsors moving into registered products.

The first session, titled “Converting Private Funds to Registered Funds: Mechanics, Tax Treatment, and Structuring the Transaction,” explored available conversion paths, the tax treatment of each approach, and structuring decisions that determine whether legacy investors take a tax hit on the way in.

The second session, titled “RIC Tax Compliance for Alternative Assets and the Growth of Dual Share Class Structures,” covered the quarterly asset diversification and gross income tests as applied to private credit, pre-IPO equity, and other alternative holdings. Vaughan and Bosmann also discussed distribution requirements, excise tax planning, and the tax mechanics of the new dual share class (ETF class) structures.