WSJ Pro Private Equity Quotes Tax & Benefits Partner

In The News
November 1, 2017

A Sept. 29 article published by WSJ Pro Private Equity titled “Will Regulatory Rule Dash Private Equity’s Retail Dreams?” examines how the fiduciary rule could impact the private equity industry’s retail investor strategy and ability to fundraise from this investor base and quotes tax & benefits partner Josh Lichtenstein. The rule ultimately “could affect the amount of money that comes in” to private equity, said Mr. Lichtenstein in the article. Marketing a fund to a retail investor with an IRA “could cause you to be viewed as acting as a fiduciary,” Mr. Lichtenstein continued. “And if the fund doesn’t do well, then you could be viewed as breaching your fiduciary duty.” Private-equity firms that accept IRA cash could be sued by individual investors who lose money, said Mr. Lichtenstein, or a government agency could determine they’ve made a prohibited transaction and take action.