Q345

221 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
221
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Q345

  1. 1. • 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.
  2. 2. 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
  3. 3. 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.
  4. 4. 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.

×