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Q345
 

Q345

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    Q345 Q345 Presentation Transcript

    • • Background: the global value of assets was soaring in recent years • PE, more generally, alternative assets, became the fastest growing segment of the industry. • the future additional requirements for large scale PEs are: • 1) Sustainability of the management team. • 2) Objectivity of the professional investment decision.
    • Blackstone’s Model: MLP • Advantages: • 1) The partners keep effective control of the firm and the operating partnerships that ran the funds, so that their fund investment is not influenced by equity investors • 2) Earnings were subject to only one level of income tax • Thus, MLP’s good for future large PEs
    • LP’s Concerns • 1) The LPs were not able to be diluted • 2) The selling of the unit may bring a different view or treatment to LPs.
    • Unitholder or LP? • LP is better • Second advantage of an MLP is that it enjoys a tax benefit • the partnership does not pay taxes from the profit • However, when unitholders receive distributions, they are taxed.