Tax Compliance Complications After Converting a Private Fund to a Registered Fund

Investment management partner Leila Vaughan authored an article titled “Tax Compliance Complications After Converting a Private Fund to a Registered Fund” for the Private Equity Law Report.

In this article, the second in a two-part series, Vaughan analyzes the benefits of regulated investment company (RIC) tax treatment, the requirements to qualify as an RIC, and the consequences of failing to meet those requirements. She also covers the types of assets that may pose problems for RIC compliance and offers possible solutions. 

“Converting to a private fund can work very well and provide significant benefits to the fund and its investors,” Vaughan notes. “A conversion must be undertaken with caution, and the fund manager should have a strategy for RIC qualification.” 

The full article is available to subscribers of the Private Equity Law Report.