Key Considerations in the Valuation of Carried Interest from a Tax Perspective
With the arrival of a new administration in 2025, the ramifications of tax reform are a hot topic for certain players in the investment management industry. In particular, investment fund general partners and managers and their valuation professionals will be taking a keen interest in values ascribed to a financial vehicle called “carried interest” or, simply, “carry” when making near-term tax planning decisions.
Digging in the Dirt: Performing Forensic Analysis of Financial Records for Valuation Purposes
When investigating financial records during a valuation, defining the scope, having effective communication with the client, and gathering the necessary records are the foundational components to a successful engagement. Whether the valuation professional is investigating personal activities or potential accounting fraud, it is important to be aware of where red flags might lurk, as well as corrective actions.
Jointly Retained Valuation Engagements: A Road Map for Trust and Cooperation
Although it might appear to be a conflict of interest, valuation professionals can serve both parties of a legal dispute. For the most part, a jointly retained valuation engagement is similar to a valuation performed for a single party, but crucial differences can be found throughout the process. Communication is particularly important to a successful jointly retained engagement.
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