Funds

For investment funds and fund managers, these tax reductions can materially improve net returns and carried interest economics. A 50% reduction in ordinary income tax and 45% reduction in long-term capital gains can enhance after-tax performance for both the fund and its general partners.

These strategies can be particularly valuable during exit events, portfolio realizations, or periods of elevated distributions—allowing funds to deliver stronger net returns to investors while optimizing tax efficiency at the GP level.