Taxation of Non-U.S. Investment in U.S. Private Credit Funds: Fund Structures, Tax Rules, Exceptions, Safe Harbors

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Course Details

Course Information

smart_display Format
Live Online with Live Q&A
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Law

Date & Time

event Date
Thursday, May 15, 2025
schedule Time
1:00 PM E.T.
timer Program Length
90 minutes

Credit Information

This 90-minute webinar is eligible in most states for 1.5 CLE credits.
BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00

This CLE/CPE webinar will provide tax counsel and advisers with guidance on navigating tax implications of non-U.S. investment in U.S. private credit funds. The panel will discuss common fund structures designed to accommodate non-U.S. investors and certain related tax considerations and consequences to non-U.S. investors. The panel will also review critical factors, such as type of investor, structure of fund, and location of fund, and address fund and investor tax issues.

Faculty

Janicelynn Asamoto Park

Attorney

Proskauer Rose LLP

Ms. Park counsels fund managers and investors on the tax and economic consequences of forming, operating, and investing in domestic and international private investment funds. She also advises on domestic and cross-border financings and investments, and inbound and outbound private mergers and acquisitions.

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Christine Harlow

Partner

Proskauer Rose LLP

Ms. Harlow is a partner in the firm’s Tax Department and a member of the Private Funds Group, advising clients on the tax aspects of private funds, including hedge funds, credit funds, private equity funds and joint ventures. She represents private fund managers in the formation of private funds, ongoing operations and the tax consequences of purchasing and disposing of investments. Ms. Harlow also represents investors regarding the tax consequences of investing in private funds. She advises fund managers and investors on a variety of fund structures, including closed-end, open-end, hybrid, and evergreen. Ms. Harlow's experience also includes structuring and negotiating seed and strategic investments and advising private fund managers with respect to the sale of investment management and general partner entities.

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Description

The United States remains a popular destination for investments by non-U.S. investors. Non-U.S. persons investing in U.S. private credit markets, funds, and related entities must understand the tax consequences arising from the various structures used to invest in the United States.

For income tax purposes, non-U.S. investors must balance various tax issues to determine the appropriate ownership vehicle for U.S. investments. Various ownership structures--whether direct ownership by a non-U.S. person or use of a U.S. or non-U.S. corporation, partnership or other vehicle--each have particular income tax consequences for the non-U.S. owner. Because non-U.S. investment in U.S. assets is a highly tax-driven activity, advisers must be well-versed in the tax consequences of various structures, plus the related tax compliance requirements.

Listen as our panel of tax practitioners goes beyond the basics to provide a comprehensive and practical guide to structuring foreign investment in U.S. private credit, from ownership profile through finalizing the deal.

Outline

Persons subject to U.S. taxation
U.S. taxation of foreign persons
Advantages and disadvantages of alternative investment structures
Tax strategies

Benefits

The panel will review these and other key issues:

What are the various tax consequences of a non-U.S. person owning U.S. loans or originating loans directly?
What exceptions or safe harbors are available for non-U.S. investors?
What are common structures used for funds investing in U.S. private credit?
What is the impact of blocker corporations and other intermediary entities on the tax treatment of foreign investment in U.S. private credit?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify various ownership structures and related tax consequences for foreign investors in U.S. private credit markets
Determine the optimal purchasing entity for a foreign investor in U.S. private credit funds
Ascertain tax planning opportunities in structuring a deal involving foreign investment in U.S. private credit

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.