Private Equity Tax Update
Managing the impact of COVID-19 is a key focus for private equity firms and their portfolio companies.
Based on all the recent discussions we have had with our private equity clients, we thought it would be helpful to share the information below to help signpost the BDO briefings and articles that are particularly relevant to private equity firms and their portfolio companies. Here are some of the key links which we think clients are finding the most useful:
- PE COVID-19 blogs
Contains series of blogs, aiming to highlight and tackle issues currently faced by the private equity market in light of COVID-19. These blogs which will be updated and new ones added as the situation develops.
- UK COVID-19 hub
Contains articles on each of the key measures and the support available including commentary for various industry sectors. It also includes a recorded webinar summarising the key UK measures (including those outside of tax) from a number of our market facing specialists.
- US COVID-19 hub
Contains articles and insights on the key US measures and support which will be of interest to those funds with US portfolio companies or US investors. In particular, this includes recorded webinars and also a technical article on tax consequences of COVID-19 restructuring for US investors.
- International COVID-19 hub
Our global hub which includes an interactive map of the financial and fiscal measures across 80 countries which we hope is useful for navigating local country measures as they develop.
Many of the COVID-19 measures are developing based on real-time feedback with businesses and industry bodies and may change significantly as the dialogue continues. For example, access to the UK Government loan financing programmes (CBILS and CLBILS) for private equity backed companies is a developing area where technical issues are still being resolved (see article here).
We think it is also worth emphasising that many of the government measures and themes that are emerging go well beyond tax (the usual focus of this update) and many of the conversations we are having with private equity firms around COVID-19 are conducted jointly with our transaction services, debt advisory, business modelling and restructuring colleagues.
We will post updates as and when there are significant developments or more detail that clarifies some of the existing questions people have.
Please do get in touch with me or your usual BDO contact if you would like to talk through any of these points or if there are particular items that you would like us to cover in more detail.
Ed Nevens, Partner