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Private Equity Club 2006EU Expert Report on Private Equity Monday 13 November
30 Pavilion Road, Knightsbridge, SW1X 0HJ
5.00pm
European Commission Expert Report on Private Equity
At the Private Equity Club meeting on Monday 13 November we will meet
to discuss the impacts and implications of the EU Expert Report on Private
Equity. The Club meeting aims to raise awareness of the Expert Report
findings and debate the issues and recommendations further.
To commence Brendan McMahon of PwC, will chair and introduce the
topic, next Darren Docker, PwC Tax, will discuss the increased concern
about tax in structuring private equity transactions in Europe and Carol
Kennedy of Pantheon will present the findings of the Expert Group.
Following the presentations, Club members will break out into table
groups to further discuss the topic. A panel of the UK representatives from
the EU Expert Group will field questions and drive debate.
Background on the European Commission Expert Report on Private
Equity
As part of the public debate on the framework for investment funds,
launched by the European Commission in July 2005, an expert group was
formed earlier this year to look at the private equity industry. The Expert
Group consists of a number of private equity players and practitioners.
The Commission invited the Expert Group to report on how the industry
operates, what are its defining characteristics and whether there are any
European-level regulatory or other obstacles which prevent the efficient
development of the industry in Europe.
The report sets in context the importance of the Private Equity sector in
supporting economic development and job creation, the challenges faced
by the sector in carrying out cross border transactions and the need to
streamline the structures utilised by private equity promoters to avoid
unnecessary tax and regulatory constraints.
Key findings and recommendations of the Expert group are;
• The EU policy makers must consider the specific characteristics of
the private equity sector when reviewing or drafting new legislation.
• For capital gains tax purposes each member state should look
through the private equity vehicle to the ultimate investor to ensure
that tax is suffered only in the home country of the investor.
• Member states should take appropriate steps to codify the mutual
recognition of each other’s fiscally transparent private equity fund
structures.
• Member states should not use the local presence of managers to
claim jurisdiction over capital gains accruing to private equity funds.
• EU institutions and member states should consider establishing,
in non legislative form, a common understanding of the parameters
of ‘private placement’.
A basis for a formal position will be developed after the report has been
given wider scrutiny. The subject was open to debate until September 20,
2006.
Date: Monday 13 November 2006
Topic: EU Expert Report on Private Equity
Time: 4.45pm Registration, meeting commences at 5pm - drinks
until 7pm
Location: 30 Pavilion Road, Knightsbridge SW1X 0HJ
(entrance on Rysbrack Rd)
Private Equity Club 2006EU Expert Report on Private Equity
Brendan is an audit partner within the Channel Islands financial
services group, specialising in Private Equity. Brendan is the Partner
responsible for our Investment Management Industry group in the
Channel Islands. In addition, his responsibilities now include the
coordination of assurance services to the European Private Equity
sector. Over the past 20 years he has advised on the structuring
of retail and private equity funds. He provides audit and advisory
services to Jersey and foreign Limited Partnerships investing globally.
He also co-ordinates the provision of taxation services as required by
the underlying limited partners, a specialist team has been created in
the US to support him in this regard.
Brendan McMahonPartnerPricewaterhouseCoopers
Private Equity Club 2006Your Presenters
Private Equity Club 2006Your presenters
Darren is a tax director, specialising in venture capital and private
equity fund structures, although he also advises other alternative
asset managers on fund structure (European infrastructure funds,
mezzanine funds etc). Darren also extensively advises on carried
interest and general partner co-investment tax issues, particularly in
terms of mitigating the risk of employment income tax treatment for UK
holders.
Darren’s major assignments in recent years have been spin outs of
large “in house” principal finance teams to establish stand-alone fund
management businesses; pan-European fund structuring; restructuring
general partner and fund management entities; advising on tax issues
presented by fund raising; using Limited Liability Partnerships in the
private equity context; and implementing European holding structures
for portfolio companies.
Darren DockerDirectorPricewaterhouseCoopers
Carol A. KennedySenior PartnerPantheon Ventures Ltd.
Carol is a Senior Partner at Pantheon which she joined in 1990 and
has worked in the industry since 1983. Pantheon is a global Private
Equity fund of funds provider with over $13bn under management.
Carol is a member of the Expert Group commissioned by the EU to
report on the Private Equity industry. She also currently chairs the
EVCA Awareness Task Force.