In my last post, I blogged about online funding platforms. In that post, I described the typical model of indirect investing through a special purpose vehicle (“SPV”) with the platform sponsor taking a carried interest in the SPV’s profits from the portfolio company and no 
transaction fee, as a means of avoiding broker-dealer regulation.
Lately I’ve been approached by current and prospective clients about online funding platforms, either by folks interested in forming and operating them or those interested in raising capital through them. There seems to be a lot of confusion surrounding how they work and what the legal issues are, so here’s my attempt to bring some
Sun Capital Partners was dealt a harsh blow by the United States Court of Appeals for the First Circuit in a recent decision where the court found that this private equity fund could be held liable for the pension withdrawal liability of its portfolio companies. The court essentially
espoused the view of the Pension Benefit
The debate over the taxation of “carried interest” has been percolating for years and the release of Mitt Romney’s personal tax returns in connection with his presidential campaign generated more wide-spread interest in the subject. And while the relatively preferential tax rates that fund managers pay on these investment profits survived the “fiscal cliff” budget