Private Equity Series: Distribution Waterfall

Private equity funds allocate the proceeds from investment sales according to a defined hierarchy known as the “distribution waterfall.” Typically, the first tier of this waterfall involves returning “invested capital” to the investors, which generally includes their unreturned capital contributions attributable to realized investments and associated fund expenses such as management fees. The second tier […]

One Big Beautiful Bill Act (“OBBB Act”) – Key Tax Provisions

Enacted on July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) constitutes a sweeping reform of federal tax and fiscal policy. Passed via budget reconciliation, the legislation integrates permanent extensions of prior tax provisions with newly enacted deductions, expanded reporting obligations, and targeted compliance mechanisms. The Act encompasses a broad spectrum of tax domains—including […]

IRC Section 1202: Qualified Small Business Stock Gain Exclusion – M&A Transactions

Disclaimer: Section 1202 was amended as part of the One Big Beautiful Bill Act signed into law on July 4, 2025. Information contained in this article has not yet been updated and is therefore not current. Introduction The §1202 exclusion under the Internal Revenue Code offers a powerful and often overlooked tax incentive for investors […]