Advanced Tax Strategies in Structuring Private Equity and Real Estate Investment Funds: Balancing Competing Interests
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Tax Law
- event Date
Wednesday, April 9, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE/CPE course will provide tax counsel and advisers with advanced guidance on structuring private equity and real estate investment funds. The panel will discuss critical considerations under current tax law and address fund manager and fund investor issues.
Ms. Kim advises the firm's leading financial institution and investment fund clients and investors on the U.S. tax aspects of financing, capital markets, and investments transactions, with an emphasis on U.S. tax matters relevant to cross-border transactions such as FATCA, general U.S. withholding tax, section 871(m), FIRPTA, and U.S. trade or business issues. She has extensive experience representing issuers of structured products and debt and equity securities, and advising lenders, borrowers, sponsors, managers and investors on U.S. tax matters in connection with credit facilities, private equity and debt funds, structured and derivative products, and securitization transactions, including CLOs and MBS.
Mr. Pae's practice focuses on the tax aspects of the formation, financing and investment activities of domestic and international private funds. He regularly advises both sponsors and investors in connection with structuring and operation of various types of funds, including buyout, infrastructure, real estate and debt funds. Mr. Pae is also experienced in secondary sale of fund interests and M&A transactions involving partnerships.
Shiukay Hung is a Partner and the Co-Chair of DLA Piper’s National REIT Tax Practice. He is recognized as a leading tax lawyer by both Chambers USA and Legal 500. Shiukay’s tax practice primarily focuses on REITs and real estate private equity, including real assets credit and mortgage REITs. His clients include Canadian pension funds, sovereign wealth funds (SWFs), US sponsors, US-listed REITs, and non-traded REITs.
In structuring private equity and real estate funds, the competing tax preferences of different types of fund investors are critical. The different types include U.S. taxable, U.S. tax-exempt, U.S. government, non-U.S. taxable, non-U.S. pension funds, and non-U.S. sovereign investors. Fund structures can use "blockers," "subsidiary REITs," and feeder funds to address these various interests and minimize U.S. taxes and tax filing obligations.
Our panel will outline structures typically used, taking into account the type of U.S.-based funds, such as standard private equity and U.S. real property.
Tax counsel must also understand current issues such as FATCA for non-U.S. investment entities and investors, the impact of U.S. tax law for both fund managers and fund investors, and carried interest rules.
The program will conclude with an overview of typical investment fund documents and tax provisions including fund PPM, subscription agreement, and side letters.
Listen as our authoritative panel of practitioners provides a high level analysis of the different and competing tax preferences of fund investors and fund managers and outlines sophisticated best practices for structuring investment funds to accommodate the myriad interests of these investors and managers.
- Overview of applicable tax rules
- Tax objectives of taxable U.S. investors
- Tax objectives of non-taxable U.S. investors (pension plans, endowments, other tax-exempt investors; governmental entities)
- Tax objectives on non-U.S. investors
- Tax objectives of sovereign investors
- Tax objectives of fund managers
- Fund structuring issues and options
The panel will review these and other vital questions:
- What are the competing tax preferences of major private fund investors that practitioners must juggle when structuring investment funds?
- How can the use of blockers, subsidiary REITs, and feeder funds accommodate the needs of particular investors?
- What challenges do sovereign investors face in retaining their status as Section 892 investors?
- How do new tax rules impact tax planning when structuring private investment funds?
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