I'll Quit

Reader comment on: John Steele Gordon on Carried Interest

Submitted by craig (United States), Apr 8, 2013 20:26

I can't speak to this issue relative to either the private equity or hedge fund guys but I can speak to it topic from the perspective of a managing member of large real estate development projects. If I'm going to do projects that generate thousands of construction jobs and multiple permanent jobs, cost in excess of $100mm, take all of my waking hours (and lots of hours when I'd rather be sleeping), preclude me from me engaging in other enterprises, require me to forego any income (with the possible exception of some fees if the lenders will allow them) until the investors recoup plus hit IRR hurdles, and require me to sign up for and expose my and my wife's assets to non-recourse carve out guaranties, cost overrun guaranties in favor of my partners, in some cases, environmental indemnification obligations, construction loan guaranties in favor of lenders, etc. etc.. and for all of that, the carried interest I might recognize if the project is successful is going to be taxed the same way that the income I'd earn by taking an office job with no personal recourse risk is taxed, then I'll quit. I'll take the office job. I'm not taking on all of this risk to subsidize those that don't.

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Other reader comments on this item

Title By Date
⇒ I'll Quit [211 words]craigApr 8, 2013 20:26
Not so much [104 words]John GillisApr 3, 2013 17:27
Attacking a news source [57 words]Donald IsenmanApr 3, 2013 17:26

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